The Oracle of Omaha tempers stock expectations: Warren Buffett’s USD 900 bn conglomerate now has “no possibility of eye-popping performance” because its colossal size means “there remain only a handful of companies in this country capable of truly moving the needle at Berkshire, and they have been endlessly picked over by us and by others,” Buffett said in his annual letter (pdf) to Berkshire shareholders.

A hard act to follow: Since Buffet took over Berkshire Hathaway in 1965, the share price has risen 4.4 mn percent. By comparison, the S&P 500 has risen 31k percent during the same period.

Berkshire Hathaway still reported its highest ever earnings in 2023: The company reported earnings of USD 97 bn in 2023, according to Berkshire’s latest earnings release (pdf).

EGX30

27,841

-5.0% (YTD: +11.8%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

21.25% deposit

22.25% lending

Tadawul

12,605

-0.2% (YTD: +5.3%)

ADX

9,280

-0.4% (YTD: -3.1%)

DFM

4,226

-0.1% (YTD: +4.1%)

S&P 500

5,089

0.0% (YTD: +6.7%)

FTSE 100

7,706

+0.3% (YTD: -0.4%)

Euro Stoxx 50

4,873

+0.4% (YTD: +7.8%)

Brent crude

USD 81.62

-2.5%

Natural gas (Nymex)

USD 1.60

-7.5%

Gold

USD 2,049.40

+0.9%

BTC

USD 51,760

+0.4% (YTD: +22.4%)

THE CLOSING BELL-

The EGX30 fell by 5.0% at yesterday’s close on turnover of EGP 9.2 bn (127.1% above the 90-day average). Local investors were net buyers. The index is up 11.8% YTD.

In the green: Orascom Construction (+20.0%), Talaat Moustafa Group (+20.0%) and Edita (+20.0%).

In the red: Alexandria Containers and Cargo Handling (-20.0%), Abu Qir Fertilizers (-19.9%) and Sidi Kerir Petrochemicals (-19.5%).

It’s a mixed picture for Asian markets this morning. Shares in China are mixed, with both Shanghai and Hong Kong basically flat, the Kospi in the red, and the Nikkei extending its rally to hit a new high. Futures suggest a soft open for shares in both Europe and North America later today.

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