Since my previous post on Berkshire Hathaway Inc. Class B (NYSE: BRK-B) on Nov. 4, the price of the stock has moved over 20% from $300 to almost $360 today.
Warren Buffett's company is not only trending well, but it also held out very well at the start of this year when many stocks saw significant declines.
If you have this stock in your portfolio, as I have since last year, Berkshire will now be returning you a pretty profit. With the major indices now showing signs of bullish strength again, the price of this stock is only likely to rally. I would not be surprised to see the price move toward $500 and beyond throughout the rest of 2022.
Why did this stock make it into my portfolio? Simply because the technicals are strong. You may choose to look at the fundamentals too, but I keep it simple and look at the technicals for the following:
- A solid history of performance
- Volume over 1 million
- Printing new all-time highs
- The price breaking out from a long-term area of consolidation
Below is the monthly timeframe that shows the stock's performance since November.
I take the stance that if a stock is printing new all-time highs, the fundamentals are strong. This saves me hours researching a company. The uneducated regularly dismiss technical analysis as hocus pocus, but it is has a rich history that goes back to the dawn of the financial markets.
To dismiss it without taking the time to understand it is a grave mistake. It eliminates one of the most powerful and consistent ways to make life-changing returns.
With the bull trend in play and the market as a whole recovering from the declines of the first part of this year, I am now looking for compounding opportunities to accelerate the profit phase.
Let your winners run and cut your losers short, as the saying goes.
