Berkshire Hathaway Buys Amazon Stock

Written by Donnie Nguyen

May 5, 2019

This week was filled with big news. The S&P 500 hit all-time highs rising just 0.8%.

The fundamentals look great:

  • The Fed left the federal funds rate alone, which should push stocks higher.
  • The job numbers were great with unemployment rate dropping to 3.6% – its lowest rate since December 1969
  • IPOs keeping coming on strong – Beyond Meat (BYND) opened Thursday at 46.00 and ended the day at 65.75, a whopping 42.9% gain in a day

From a technical perspective, things don’t look so great. We’re bumping up against a strong resistance point and a bearish hanging man pattern has formed on the weekly chart.

Advertisements

Berkshire Hathaway (BRK-A) just reported that they have bought Amazon (AMZN) stock.

Berkshire is also hosting their annual shareholders meeting this weekend.

On a personal note, my Roth took a beating this week with my top holding Arista Networks (ANET) getting hammered because of weak guidance.

As is the case most weeks, all this news does nothing to change my overall strategy.

  • Keep a healthy emergency fund of at least 6 months living expenses
  • Keep 25% cash in my individual stock accounts when markets are at all-time highs – ready to deploy that cash in the next correction or bear market
  • Keep on dollar-cost averaging in my mutual fund accounts, which are 100% stocks since I have a 20+ year time horizon

How are you guys handling the market? Share your thoughts by commenting below. If you like this post, share it on social media.

LEARN MORE

To learn how to invest, sign up for our newsletter and download my free ebook here.

Check out my Stock of the Month picks here.

Watch my YouTube channel here.

DISCLOSURE

I/we are long ANET.

I wrote this article myself and it expresses my own opinions. I’m not receiving compensation for it (other than from Wolves Of Investing), and I have no business relationship with any company whose stock is mentioned in this article.

Advertisements

stock of the month results

Every month I pick a stock that I believe has long-term potential to beat the market.

download my free investment ebook

Learn some of the tips that I wish I had known before I started investing.

Videos on stock investing

Check out our video series and gain valuable insight into investing.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
Donnie Nguyen

Donnie Nguyen

Donnie Nguyen is the founder and CEO of Wolves of Investing. He started investing in the stock market in the early 2000s. He follows the teachings of Peter Lynch, Warren Buffett, and other investing legends. When he's not investing or blogging, he loves spending time with his family traveling and experiencing the world.

Follow Donnie on Facebook and Twitter!

0 0 votes
Article Rating

Pin It on Pinterest

Shares
Share This