Diamonds and Dogs
Warren Buffett is bullish on his company. Berkshire Hathaway (BRKB) is up 4% following better than expected earnings over the weekend. Berkshire reported earnings of $6.88 billion, double a year ago numbers of $3.44 billion when hurricane costs reduced profits in the insurance divisions. Insurance float now stands at $118 billion cash, an increase of $4 billion. In August, Warren Buffett followed through on his promise to buy back stock, spending a $1 billion. Hopefully, Warren was in the market buying back stock in October as well.
Sysco (SYY) the food company struggling due to food cost inflation. Sysco is down 9% to a five month low after missing earnings estimates by a penny as sales rose 3% to $15.22 billion. Gross margins decreased 7 basis points to 20.01% due to higher costs for meat, poultry and produce categories. Transportation costs are also rising and unfortunately management expects these higher costs to persist.