Warren Buffett's company. If there was a good example of "slow and steady wins the race" in the stock market, it will be Berkshire Hathaway stock.
For the past decade, this stock has been going up and up. There is no stopping it. Even if you bought at one of the tops, your investment would have yielded good results since the stock went on to make new highs.
If you find yourself losing money in the stock market even when you are working so hard, then perhaps it is time to consider investing in one of the greatest investor of all time. Warren Buffett.
The information and charts that I put here are from March 16 2022. So if you are reading this article from somewhere in the future, do take that into consideration. But one thing I do know is that you won't go wrong investing with Warren Buffett.
Just to prove my point, let me show you the quarterly chart of Berkshire Hathaway's Class B stock. Slow and steady isn't it? It has been rising and rising. If you have bought it back in the nineties and just hold on to it, you would have made a massive return.
Berkshire Hathaway's class A stock is too expensive for most people. However, the normal person can still invest in Berkshire Hathaway's class B stock. It is not out of reach even for the hardworking blue collar person.
There is this thing called averaging down. This type of investment is very dangerous with most stocks. You buy more and more of the stock as it goes down so that your average cost goes down. It is dangerous because some stocks can lose 80% of their value. Some even go to zero.
But with Berkshire Hathaway stock, you can average down with peace of mind.
If you have some extra cash, consider buying a few shares every month. This is regardless of boom or bust in the stock market.
So the question of is it a good time to invest in Berkshire Hathaway stock can be answered with this... Anytime is a good time.
It is just too easy to say...you can invest any time.
I think if you read this article you would want some meat out of it. So let us take a look at the daily chart of Berkshire Hathaway stock. At this moment, the stock market is really beaten down. But Berkshire Hathaway has been making new all time highs. This is incredible. What if the stock market recovers?
I think the stock will continue to rise if the stock market recovers.
This is called relative strength. When the market is down and a stock is up, it is said to have relative strength. So if the stock market moves up again, it is likely this stock will move up perhaps even greater than other stocks.
Recently the stock broke out of an ascending triangle type of pattern. The top of the pattern will be an area of support and as long as the stock stays above the top of the pattern, then it is likely to continue to move higher.
The ascending triangle is a bullish continuation pattern and therefore, the trader or the investor can buy the stock at the moment. It is very likely that the stock will continue to move higher.
Notice how the stock is trading above the rising 20 MA, 50 MA and 200 MA. This is a picture of strength and a strong bullish uptrend.
Even in the weekly chart, we can see that the stock is trading above its rising weekly 20 MA, 50 MA and 200 MA. This is a picture of long term bullish strength.
There is a long term support below, which I have highlighted in green. It is a very large weekly consolidation and Berkshire Hathaway's stock has broke out of it. The longer the consolidation, the greater the support. This area of around $275 to $295 is a strong support area.
If you are a long term investor, you can buy this stock as long as it stays above this support area.
There is a bottoming tail near the rising weekly 20 MA. Bottoming tails usually form because the stock rejects to go lower. So this is also a sign of bullishness and as long as the stock stays above the low of the bottoming tail, then it is likely to continue to move higher.
Whether for the trader or investor, Berkshire Hathaway's stock is a STRONG BUY at the moment.
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