With all the talk of IPOs and upstarts, it’s a great time to remember that legacy players can still pack a punch. This week, we look at two companies that have been on public markets for decades and have been all over the headlines lately: Intel(NASDAQ: INTC) and Berkshire Hathaway (NYSE: BRK.B).
Intel has been on the Stock Club radar for about nine months, when it was first pitched by Clem Chambers. Since then, it’s up more than 270%, driven by many of the factors he predicted like outsized chip demand, a push to deconsolidate manufacturing capacity, and increased government investment. It’s a pretty monumental occasion, considering this is the first time Intel has reached an all-time high since the dot-com bubble.
In its most recent quarter, Intel reported revenue of $13.6 billion, well above estimates of $12.4 billion, while also delivering a significant expansion in gross margins and raising its revenue forecast. Definitely a stock worth a look if you can get past the valuation.
Berkshire is in the news for a completely different reason: its new CEO, Greg Abel. While Abel assumed the role in January, this will be his first annual meeting – arguably Berkshire’s most beloved tradition.
Compared to Warren Buffett, Abel is expected to take a more hands-on approach, often touring facilities across the company’s many subsidiaries and favoring direct involvement in operations.
So far in his tenure, he’s accomplished four notable things:
- First, on his first day as CEO, he closed Berkshire’s $9.7 billion acquisition of OxyChem, Occidental’s chemical subsidiary.
- Second, on March 4th, Berkshire resumed share buybacks for the first time since May 2024, repurchasing about $226 million of stock. Clearly, Abel sees Berkshire itself as a buy and wouldn’t deploy that kind of capital otherwise.
- Third, he personally invested his entire $15.3 million after-tax salary into Berkshire Class B shares.
- Finally, he invested $1.8 billion into Tokio Marine, taking Berkshire’s total Japanese equity exposure above $46 billion.
We’ll certainly be tuning in to the annual meeting on May 2nd.
We wrap by telling you which one we’d invest $10K in.
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00:00 Intro01:53 Two Legacy Picks03:29 Intel Turnaround Setup05:05 CHIPS Act Boost08:14 Q1 Earnings Surge15:00 Buy Sell Or Regret17:45 Berkshire AGM Story20:05 Succession To Greg Abel and32:48 Operator Versus Investor40:34 Warren Buffet’s Japan Trade Playbook42:03 10k Pick
