The last analyst having a "Sell" call on Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A) has now removed it, as Stifel Nicolaus analyst Erik Holm maintains it was the right call at the time, although for the wrong reasons.
Dow Jones Newswires reported:
"Stifel Nicolaus analyst changed his “sell” call on Warren Buffett’s Berkshire Hathaway, reports Dow Jones Newswires’ Erik Holm:
"Stifel had been the only major firm with a “sell” rating on the shares over the last several months. From the end of June through Friday, Berkshire’s Class B shares rose 6.5% compared to the 30% return of the Standard & Poor’s 500.
"Mr. Shields wrote that while the “sell” rating had been correct, it was “for the wrong reasons.”
"The recovery of Berkshire’s noninsurance units happened faster than Stifel anticipated, he said. And the company profited more from pulling funds from its insurance reserves than expected.
"In its annual report Saturday, Berkshire said its manufacturing, service and retailing operations earned $2.5 billion last year—more than double their combined profit in 2009. The firm attributed part of the increase to cuts in spending. But demand for products made and sold by many Berkshire companies is also on the rise, the company said."
Berkshire was trading at $129,848.00, up $2,298.00, or 1.80 percent, as of 11:38 AM EST.
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