NEW BUY PRICES! BRK.B, MIDD, TENCENT, ALIBABA Stock Analysis Update

Berkshire Hathaway, Middleby, Tencent and Alibaba Q2 Updates and New Buy Prices.
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I will provide an update on Berkshire Hathaway, Middleby, Tencent and Alibaba.

Let’s start with Berkshire Hathaway
Berkshire Hathaway BRK.B
Share Repurchases $5.1 Billion
EPS $10.88
No significant changes to major holdings

Now we often forget that Berkshire Hathaway is actually a big insurance company. They are the underwriter for lots of other insurance companies. It’s a great business and makes Berkshire Hathaway amazingly stable.

Each quarter, Berkshire Hathawy releases a document called the 13-f. This is a document that shows what the company has bought and sold.
The media has a frenzy when Berkshire makes changes to their stake in companies. For example, Berkshire made an investment in a gold Miner called Barrick Gold and there are already hundreds of news articles on this.

But let’s look at the bigger picture.
Berkshire Hathaway is a stable giant that has many different investments and they have the best financial managers in the world running the company.
I think the big news here that isn’t getting the attention it deserves is the share repurchases.
This means that Warren Buffett and his team decided that their own company was a good investment.
This is great for shareholders as the value of your shares is now improved because there are less shares available.

I still think this is one of the first investments I would make if I was just starting a portfolio. I have a buy price now of $205, up from $196. With a target price of $385

Middleby
EPS $0.55 (analysts expected $0.41)
Revenue $472 Million (analysts expected $445 Million)

EPS is down 76% YOY
Revenue is down 38% YOY

So the results were bad, but not as bad as expected. And the share price jumped up significantly. Makes no sense, since they are making nowhere near the money they were making this time last year.

Tencent
37% YOY increase in shareholder profit
29% YOY increase in Revenue
I like Tencent a lot and they have reported fantastic Q2 results. If you are interested in finding out more about Tencent, like all these companies today, I have a more detailed video that i have made in the past, so check that out.
Like their american tech counterparts, Tencent showed that the current strange market conditions are really favorable for big tech.

WeChat pay had grown about 30% which is a fantastic result.

There has been a lot on news lately how the US is going to ban american companies advertising on Chinese platforms like WeChat. But The US makes up less than 2% of Tencents business, so it won’t be a big problem.
So if the share price tumbles because of this issue, well that will provide us with hopefully a buying opportunity.

Now let’s take a look at the other giant Chinese tech company, Alibaba.

Alibaba
EPS 14.82 CNY Up 18% YOY (analysts 13.82 CNY)
Revenue 153.75 Billion CNY Up 34% YOY (analysts 148 Billion CNY)

Following on from the big numbers from Amazon, Facebook and Apple, Alibaba saw big increases across the entire company.

“Alibaba delivered excellent results this past quarter. We were well positioned to capture growth from the ongoing digital transformation, which has been accelerated by the pandemic, in both consumption and enterprise operations,” said CEO Daniel Zhang.

Like Amazon, Alibaba saw strong growth in its e-commerce businesses across countries.

I am really impressed with Alibaba. Not doing a lot wrong and for such a big company to be growing like they are, well it’s very impressive.
I still think the growth won’t last forever.
All fast growers turn into mature companies at some point. I don’t know how long that will take, but I need to factor this into my intrinsic value calculations.

Previously I had a buy price at $145 and now I have improved that to $175.
Now this is the price I will be waiting for, but as many of you know the price is closer to $260… So that isn’t looking likely anytime soon.
I get a lot of people saying that i’m too conservative and that this price will never happen. And I understand these comments a lot, But strange things in the market happen. Earlier this year was a prime example of strange stock market events happening.

My target price for Alibaba is $330.
I hope you enjoyed this update, remember to be patient and let the prices come to you. I have some really interesting insurance company video’s coming out soon so stay tuned hit subscribe and see you in the next video.