Summary

• 100% technical buy signals.
• 13 new highs and up 11.07% in the last month.
• 39.31% gain in the last year.
• The Pros and the retail investors have very different opinions.

The Chart of the Day belongs to the diversified insurance company or as some call it the largest closed-end conglomerate Berkshire Hathaway (BRK-B). I found the stock by sorting the stocks of the S&P 100 Index by the closest to their 52-week high and then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Spotter signaled a buy on 3/2 the stock gained 8.04%.

BRK.B Price vs Daily Moving Averages

Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. It provides property, casualty, life, accident, and health insurance and reinsurance; and operates railroad systems in North America. The company also generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets. In addition, the company manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; flooring products; insulation, roofing, and engineered products; building and engineered components; paints and coatings; and bricks and masonry products, as well as offers manufactured and site-built home construction, and related lending and financial services. Further, it provides recreational vehicles, apparel products, jewelry, and custom picture framing products, as well as alkaline batteries; castings, forgings, fasteners/fastener systems, and aerostructures; and seamless pipes, fittings, downhole casing and tubing, and mill forms. Additionally, the company distributes televisions and information; franchises and services quick service restaurants; distributes electronic components; and offers logistics services, grocery and foodservice distribution services, and professional aviation training and shared aircraft ownership programs. It also retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and computers; jewelry, watches, crystal, china, stemware, flatware, gifts, and collectibles; kitchenware; and motorcycle apparel and equipment. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska. 

Barchart Technical Indicators:

• 100% technical buy signals but increasing
• 39.81+ Weighted Alpha
• 39.31% gain in the last year
• Trend Spotter buy signal
• Above its 20, 50 and day moving averages
• 13 new highs and up 11.07% in the last month
• Relative Strength Index 73.67%
• Technical support level at 345.57
• Recently traded at 349.66 with a 50 day moving average of 319.76

Fundamental Factors:

• Market Cap $758 billion
• P/E 28.44
• Revenue expected to grow 5.10% next year
• Earnings estimated to increase 6.70% this year, an additional 10.40% next year and continue to compound at an annual rate of 23.30% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analysts issued 1 strong buy, 3 buy and 2 hold opinions on the stock
• The Wall Street consensus price target is 347.00
• CFRA's Market Scope price target is 355
• Value Line has a 18-month price target of 265 - 373 with the midpoint being 319
• All the pros look for the stock to be down and here is where it gets to be interesting
• The individual investors following the stock on Motley Fool voted 7,178 to 152 for the stock to beat the market with the more experienced investors voting 1,679 to 21 for the same result
• 270,800 investors are monitoring the stock on Seeking Alpha

Conclusion: There seems to be a big disconnect between the professional investors who think the holdings are so diverse that they will mirror the market and the individual investors who worship Warren Buffet as the Greatest Investor Ever! I would never bet against Warren Buffet and Charlie Munger, but I think the pros do not have confidence in their successors. Keep stop losses in place for when that Black Swan event happens.