For some, the Oscars might be this weekend’s highlight. But for investors, the much-anticipated release of Warren Buffett’s annual chairman’s letter will be the main event.
Shares of Berkshire Hathaway, led by Buffett, have soared over the past 12 months. They are up more than 28.54% vs. a 24.95% gain in the Dow Jones industrial average.
From 1965 to 2015, the compound returns of the shares averaged 19.2%.
Like the rest of the country, Buffett is sure to discuss President Donald Trump, whom he did not back for the Oval Office.
Since the election, Berkshire Hathaway shares have improved about 18%, however.
Given the Oracle of Omaha’s focus on infrastructure, he may have some positive perspectives on the new president.
One of Berkshire Hathaway’s main holdings, BNSF railroad, could benefit from growth in the economy as well — as more business means more demand for transportation, of course.
On the flip side, Trump’s position on building a wall on the U.S.-Mexican border and funding it through a border tax could mean fewer exports to and imports from that country.
A tough matter for Buffett could be Wells Fargo, which continues to face regulatory and other fallout from its fake accounts scandal; some cities and investors are also moving to divest from the bank over its role in funding the Dakota Access Pipeline.
Still, shares of Wells Fargo have risen along with those of other financial firms in light of expected regulatory reforms under Trump. In fact, in the past three months, shares of the California-based bank have improved 9.6%, beating Berkshire’s 7.3% gain.