The past six months have been devastating for growth companies. From the tech space to speculative startups to everything crypto, many of the well-known growth stories of the past year have seen their gains evaporate – and then some.
However, the more slow-and-steady companies have been holding up far better now. And some even play to multiple favorable market trends now, which make them likely to continue performing well in the future.
That latter category is where Berkshire Hathaway (BRK-B) has been a success.
A conglomerate composed of a stock portfolio and a portfolio of over a hundred companies, including many in insurance and housing materials, shares are now up 7 percent over the past year, while the S&P 500 is down 3 percent.
And the company has been actively putting its cash to work into the energy sector, indicating that the current boom has a long time to play out.
Action to take: Investors may like shares here, even near all-time highs. A possible downtrend in the market could potentially weigh on shares, but with growth stocks out of favor, as a value play trading at under 9 times earnings the stock likely has more upside. Shares do not pay a dividend.
For traders, the September $330 calls, last going for about $8.70, can likely deliver mid-double-digit gains from a further rally in shares in the coming months.
Disclosure: The author of this article has a position in the company mentioned here, but does not intend to trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.