Dazhong.com Poster News Reporter Shen Tong Report
Recently, Berkshire Hathaway, the stock god Buffett , announced its third quarter report. In the third quarter, the company achieved revenue of US$76.93 billion, an increase of 9% over the same period last year. Although the net loss attributable to shareholders was US$2.69 billion, a sharp narrower than in the second quarter, Berkshire's cumulative loss in the first nine months of this year was nearly US$41 billion, while the company's net profit was more than US$50 billion in the same period last year. Regarding such a report card given by the Stock God, many investors have begun to question its core concept of value investment.
(Data source: Berkshire Hathaway third quarter report)
What should ordinary investors learn from Buffett?
In response to this issue, Pangu Think Tank researcher Jiang Han said in an interview with Poster News reporter: "Just as Buffett himself said, the loss of book investment income in any quarter is actually meaningless. In fact, this sentence is also very reasonable. This is the same as the kind of thing brought by the "floating profit" or "floating loss" that occurs when people invest in stocks. This is actually an illusion of wealth. On the surface, floating losses are as long as there is no final result. Confirm that there is no real value in fact, and the same is true for floating profits. As long as you don’t have enough money, it is something that has no great value. So under the current circumstances, although Buffett has had certain floating losses, we still need to look at it calmly. "
In fact, Buffett’s biggest problem at present may not be floating losses, but what he claimed in the report was affected by the interruption of the supply chain and rising costs, which led to certain operating pressure on the business he invested in. In Jiang Han's view, this impact has been around since 2021. The entire market is declining due to the impact of the epidemic. Although the market is recovering, Buffett is using his actual performance to tell the market that the market's recovery may not be as great as imagined. Even under the overall downward pressure on the economy, Berkshire is actually facing very big problems. So in this context, we see that Buffett's current layout and his judgment on the market may be the most critical.
. For current Chinese investors, Jiang Han said: "In fact, you cannot blindly follow Buffett across the river. After all, Buffett's investment often involves a long and in-depth intervention. Research on the operation of the investment company is not applicable to most ordinary investors. Therefore, we should not focus on Buffett's so-called investment target, but on Buffett's investment direction and Buffett's judgment of the market. As the most famous stock god, Buffett's judgment in the market is actually quite accurate. Finding Buffett's market judgment may be the most important thing at the moment." What signal does
significantly reduce its holdings in BYD ?
It is worth noting that in terms of the market value of holdings in , according to the information disclosed by the Hong Kong Stock Exchange, on November 1, Berkshire sold 3.297 million shares of BYD H shares at a price of HK$169.87 per share, with a total transaction amount of approximately HK$560 million. This is the third time Buffett has reduced his holdings in BYD shares and since August. After the completion of this share reduction, Buffett's shareholdings in BYD fell from 225 million shares to 197 million shares, and 's shareholdings in fell from 20.04% to 17.92%. In other words, in four months, Buffett reduced his holdings of BYD shares by about 28 million shares. Since the third quarter, Buffett has cashed out nearly HK$1.4 billion at BYD.
So, what impact will Buffett's share reduction have on BYD? For ordinary investors, what kind of signals are conveyed?
In Jiang Han's view, it is actually a normal phenomenon for the stock god to reduce his holdings in BYD on a large scale, because the entire market currently sees that Buffett has gained increased returns in BYD.
This is indeed true. In September 2008, Buffett bought 225 million shares of BYD for HK$8, spending HK$1.8 billion. As of the time of reduction, Buffett's BYD stocks had an overall increase of about 31 times, worth nearly HK$60 billion.Such high profits, according to the style of the stock god Buffett, although it is held for a long time, it is not ruled out that a certain position adjustment will be made in the short term, and more funds will be obtained through position adjustments to make the next investment.
In addition, from the current market perspective, Jiang Han believes: "BYD needs relatively long-term market development momentum. At present, BYD's market performance is very good and has entered a golden period of development. We have sufficient reason to believe that as long as BYD can seize its advantages, it is still possible to perform well in the market."
According to the third quarter report previously released by BYD, the company achieved revenue of 105.023 billion yuan in the first three quarters, and increased by 11.94% year-on-year; net profit was 3.414 billion yuan, a year-on-year increase of 116.83%. Among them, the company's net profit in the third quarter was 1.751 billion yuan, a year-on-year increase of 1362.66%. At the same time, BYD expects its annual net profit to be 4.2 billion to 4.6 billion yuan, a year-on-year increase of 160.15% to 184.93%. The reason for giving such a prediction for the full-year performance is that BYD said that in the fourth quarter, the automobile industry is expected to continue to improve, and the sales of new energy vehicles will steadily grow.
Such high profits, according to the style of the stock god Buffett, although it is held for a long time, it is not ruled out that a certain position adjustment will be made in the short term, and more funds will be obtained through position adjustments to make the next investment.In addition, from the current market perspective, Jiang Han believes: "BYD needs relatively long-term market development momentum. At present, BYD's market performance is very good and has entered a golden period of development. We have sufficient reason to believe that as long as BYD can seize its advantages, it is still possible to perform well in the market."
According to the third quarter report previously released by BYD, the company achieved revenue of 105.023 billion yuan in the first three quarters, and increased by 11.94% year-on-year; net profit was 3.414 billion yuan, a year-on-year increase of 116.83%. Among them, the company's net profit in the third quarter was 1.751 billion yuan, a year-on-year increase of 1362.66%. At the same time, BYD expects its annual net profit to be 4.2 billion to 4.6 billion yuan, a year-on-year increase of 160.15% to 184.93%. The reason for giving such a prediction for the full-year performance is that BYD said that in the fourth quarter, the automobile industry is expected to continue to improve, and the sales of new energy vehicles will steadily grow.
