Breakfast News: Berkshire Sits Tight

Breakfast News: Berkshire Sits Tight

Source: Image Created by Jester AI.

1. Buffett's Berkshire Avoided Major Purchases

The latest 13F filing for Berkshire Hathaway (BRK.B 1.31%) showed the management team made no significant investments during the first quarter. The stake in Apple (AAPL -0.07%) remained unchanged, but other portfolio holdings were trimmed.

• No longer the biggest shareholder of BofA: Berkshire completely exited positions in Citigroup (C -0.39%) and Nu Holdings (NU -0.72%), and reduced holdings in other finance stocks such as Bank of America (BAC 0.64%), showing a clear view on the sector.
• Doubling stakes in smaller areas: Berkshire added 1.5 million shares of Pool Corp (POOL 2.38%), with the 145% increase in holdings being the largest for the quarter. Berkshire also doubled the allocation to Constellation Brands (STZ 2.67%) as a likely consumer staples play.

2. Doximity, Globant Set to Open Down 20% or More

Stock Advisor recommendation Doximity (DOCS -10.03%) fell over 20% after the closing bell following the quarterly results release. Despite beating expectations on revenue and earnings, a disappointing outlook caused investor concern.

• Revenue guidance for the full-year indicates 10% growth rate: Concerns about macroeconomic unpredictability and how it could impact future plans were factored into the outlook, but growth is still expected for the coming year.
• "We must navigate the uncertainties of the current global economic environment": Globant (GLOB -24.31%) dropped in excess of 25% after the market closed, after an earnings miss and comments by the CFO that the coming quarter will be difficult.

3. What You Might've Missed on Thursday

Applied Materials (AMAT -5.29%) fell over 5% in pre-market trading Friday after missing quarterly revenue consensus and sought to reassure shareholders it was well-equipped to deal with the evolving market conditions.

• Up 152% since 2023 Rule Breakers rec: Cava (CAVA -2.09%) looks set to open over 3% lower despite quarterly revenue jumping by 28% versus last year, with worries around lower restaurant-level profit margins and higher food costs.
• Waiting for Grand Theft Auto VI: Take-Two Interactive (TTWO -2.41%) moved 3% lower following the closing bell after results showed a miss in earnings and disappointment that the revenue from the delayed Grand Theft Auto game won't manifest itself until fiscal 2027.

4. China in Focus

An institutional survey showed market participants expect U.S. tariffs on China to hold at 30% until late this year, with even the current tariff rate estimated to wipe out 70% of Chinese shipments to the U.S. in the medium term.

• "We expect that trade negotiations end up in shallow surface level deals": Kelly Chen, an economist at DNB Bank, voiced there's a low expectation for a speedy undoing of all the duties Trump is imposing.
• Huang says China could become a $50 billion market: Nvidia (NVDA 0.28%) CEO Jensen Huang is reportedly targeting China for a new R&D centre in a bid to end the slump in sales, partly due to the tightening U.S. export controls.

5. Your Take

Which companies with a founder-CEO still at the helm do you have extremely high conviction in, and why? Discuss with friends and family, or become a member to hear what your fellow Fools are saying!