Berkshire’s Annual Conference
Warren Buffett’s Berkshire Hathaway (BRK/B) is hosting its annual investor conference this weekend, and investors who don’t make the pilgrimage to Omaha will tune in from around the world to hear Buffett and Munger provide their insights into the economy and the market. You can tune in here. We often hear that Berkshire’s stock gets a lift coming out of the annual meeting, but a look at the stock’s performance leading up to and after the annual meeting suggests otherwise.
Over the last 20 years, BRK/B stock has averaged a gain of 1.0% (median: 80 bps) in the week leading up to the meeting with gains 71% of the time. That average is higher than the average of all periods by a factor of just over four, with positivity rates 18 percentage points higher than that of all periods.
Immediately coming out of the conference, Berkshire has also tended to get a lift with the stock averaging a gain of 40 bps (median: 80 bps) the day after the conference, but that bounce didn’t tend to last long. As shown in the table, on both an average and median basis, returns over the following week were lower than the following day. Buffett would be the last person to advocate a strategy of short-term trading of Berkshire stock, so it’s only fitting that there isn’t a clear pattern of performance leading up to or immediately after his annual “Woodstock for Capitalists”. Click here to view Bespoke’s premium membership options.