Warren Buffett may have found an action he likes: his

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Warren Buffett, CEO of Berkshire Hathaway, speaks to the press when he arrives at the 2019 Annual Shareholders Meeting in Omaha, Nebraska, on May 4, 2019.

Something unusual has happened in the markets in the last week. The high-flying tech stocks that investors have sought refuge have declined, but so has the recovery of COVID-19 in the travel and leisure sector.

Instead, not only finance has gained ground as big banks have reported results, but also the energy, industrial and materials sectors, where value stocks are located. The S&P 500 Index (XX: SP500V) has risen 5% in the past week, outperforming the broader (SPX).

Which brings us to what some would now consider a high-value action: Berkshire Hathaway.

Warren Buffett’s company has remained silent during the pandemic, and recently agreed to spend $ 10 billion of its $ 137 billion in available cash on a natural gas transmission and storage business.

He has also found something else: his own company, according to the Rational Walk blog. The blog says, according to a presentation by the Securities and Exchange Commission in early July, that there is likely to be a buyback on the order of $ 5 billion to $ 5.5 billion of Berkshire Hathaway (BRK) shares. (It involves mathematics derived from Buffett’s 15.54% ownership of the company that was reported in the filing, and the comparison to Berkshire Hathaway’s outstanding shares reported in a form on March 31.)

It will not be clear until August, when the company publishes its second quarter results, whether or not the company will disclose the extent of its share repurchase activity.

So if there were any buybacks, the question would be why.

“It seems likely that Buffett’s views on the range of possible COVID-related economic outcomes have narrowed somewhat, and that he might view the worst results as less likely than when he spoke at the May 2 annual meeting,” says the blog says.

While it’s true that some of the publicly listed companies that Buffett owns, notably Apple (AAPL), have met during the second quarter and in July, you might have a glimpse of the companies that Berkshire Hathaway operates directly, like Geico Auto Insurance and Duracell.

“Your own assessment of the portfolio’s intrinsic value, as well as the intrinsic value of Berkshire’s operating companies, is what will inform your thinking when calculating Berkshire’s intrinsic value,” says the blog.

The buzz

There is good and bad news on the coronavirus front. Testing has actually increased, with a record 831,918 tests performed in one day, but the bad news is that the positive test rate remained at a high 8.6%, according to the COVID-19 monitoring project. In May, the World Health Organization recommended not to reopen until positive test rates were below 5% for at least 14 days.

The leaders of the European Union meet to discuss a proposal for a recovery fund of 750 billion euros.

Data on a part of the economy that is apparently experiencing a V-shaped recovery, the housing market, will be obtained when the home start numbers are released. Consumer sentiment data is also available.

Netflix (NFLX) shares plummeted in premarket trading after the streaming company led subscriber numbers much worse than expected in the third quarter. “As expected, growth is slowing as consumers overcome the initial COVID shock and social constraints,” the company said. Netflix also named the company’s chief content officer, Ted Sarandos, as co-CEO.

Credit Suisse doubled its target price for shares in Tesla Inc. (TSLA) to $ 1,400 from $ 700, but said the shares are “at a perfect price,” meaning any material alteration would lead to a correction.

Black Rock

(BLK) exceeded earnings expectations after generating $ 100 billion in net inflows during the quarter.

The market

Dow futures (YM00) were slightly higher, although the Nasdaq-100 (NQ00) contract was particularly strong.

Oil futures (CL) fell, while gold (GC00) rose more.

The euro (EURUSD) was trading above $ 1.14 with the critical EU summit underway.

The graphic

In an article on racial inequality, Goldman Sachs chief economist Jan Hatzius shows that the United States has less intergenerational mobility, as well as a more unequal income distribution, than its peers. Policies that improve African Americans’ lifetime earnings prospects will also add to the country’s economic potential over time, he says.

Random readings

The Washington Post’s exposition of the area’s soccer team was published, with 15 complaints of sexual harassment against the club.

Another accusation of a violent altercation over a buyer’s refusal to wear a mask.

Take a look at the ultra-black nightmare fish, or not, if you haven’t had your coffee.

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