Berkshire Hathaway is a holding company. Co.'s subsidiaries are engaged in several business activities which include: underwriting private passenger automobile insurance; operation of a railroad system in North America; regulated electric and gas utility; manufacturing of products including industrial, consumer and building products; wholesale distribution of groceries and non-food items; provider of services including aviation pilot training, electronic components distribution and retailing businesses, including automotive dealerships; and manufactured housing and related consumer financing, transportation equipment, manufacturing and leasing, and furniture leasing.
When researching a stock like Berkshire Hathaway, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from BRK.B Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for BRK.B stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the BRK.B 200 day moving average ("BRK.B 200 DMA"), while one of the most popular "shorter look-backs" is the BRK.B 50 day moving average ("BRK.B 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Berkshire Hathaway. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the BRK.B 200 DMA and the BRK.B 50 DMA, we get a moving average convergence divergence indicator ("BRK.B MACD"). The BRK.B MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis