WMT - Berkshire's Recent Purchases Show Why Value Investing Still Works
While high-momentum stocks have completely dominated cheaper value stocks over the past decade since the 2008 global financial crisis, recent events have turned the tables in a big way. There's no better example than the success of recent stock picks by Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). The Warren Buffett-led conglomerate has received some criticism for sitting out a lot of the tech-fueled 11-year bull market, when expensive stocks continued to march higher while cheaper stocks stagnated.
While many of Berkshire's existing holdings have indeed taken big hits recently, these are stakes that it has owned for years. Meanwhile, Berkshire's newest picks -- Kroger (NYSE: KR) and Biogen (NASDAQ: BIIB) -- have dramatically outperformed the market during these troubled times, proving that in times of turmoil, Berkshire's "risk-off" philosophy is the more resilient play.
Image source: The Motley Fool.