- Does This Berkshire Hathaway Connection Make Aurora Innovation Stock a Buy?
May 11, 2026
For a company working to prove out its business model, a big endorsement can go a long way. That's what happened with the autonomous trucking company Aurora Innovation (NASDAQ: AUR) and its expansion agreement with the Berkshire Hathaway transportation subsidiary, McLane.
This is an important development for Aurora, and receiving even an indirect nod of approval from Berkshire can carry some weight.
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Driverless operations
McLane has over 80 U.S. distribution centers, serving markets that range from retail to restaurants. It began using Aurora's tech in 2023 and has since recorded 280,000 supervised autonomous miles in Texas. The current pilot program includes two daily round-trips, where the technology drives the middle mile, which is typically the longest stretch of the drive.
The expansion approves driverless operations between Dallas and Houston, with new routes being developed. "Aurora plans to expand to new routes between McLane distribution centers across the U.S. Sun Belt by the end of the year, with plans to serve additional McLane business in the future," Aurora said in its press release.
This is an important milestone because it shows that a large company saw enough value in Aurora's tech to expand its partnership. That vote of confidence can lead to other clients.
Still in the early stages of the Aurora Innovation story
The global autonomous truck market is expected to more than double from $46.7 billion in 2025 to $139.4 billion by 2033, according to Grand View Research. As one of the few pure-play autonomous trucking stocks, there's a lot of potential here. Still, the potential reward must be weighed against the risk.
Aurora has fewer than 200 trucks on the road. The company's revenue was just $3 million for all of 2025, while the net loss totaled $816 million. That doesn't negate the future upside potential, but it just needs to be balanced with managing the risk, which can be accomplished by taking a measured investment approach.
Should you buy stock in Aurora Innovation right now?
Before you buy stock in Aurora Innovation, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
Does This Berkshire Hathaway Connection Make Aurora Innovation Stock a Buy? was originally published by The Motley Fool
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- Peace Will Bring Lower Oil: Warren Buffett’s Top Energy Picks for Berkshire Hathaway Will Still Shine
May 11, 2026
Geopolitical conditions heavily shape oil prices. When conflict erupts near oil-producing regions, prices spike, and naturally, when peace prevails, they fall. Several key mechanisms explain this relationship. Wars embed a "geopolitical risk premium" into oil prices, reflecting fears of supply disruption. Peace eliminates that premium. Conflicts also trigger sanctions that block oil exports; diplomatic resolutions unlock that supply and ease market tightness. War destroys infrastructure and drives away investment, while peace attracts the capital needed to restore and expand production.
Critical shipping routes like the Strait of Hormuz become dangerous and expensive during conflict, raising costs passed on to consumers. Peace restores efficient, affordable transit. Finally, prolonged conflict suppresses economic growth and energy demand, while stable relations enable nations to cooperate on energy policy more effectively. Ultimately, every barrel of oil carries within its price a reflection of the world's stability, and peace lowers that price. Peace may be on the way in the conflict with Iran, and while the current prices will fall at least 10% to 15% on an announcement of a cessation of hostilities, the $50 to $60 level Wall Street had forecast for oil in 2026 is now history.
Quick Read:
Oil prices move dramatically on news about the war with Iran. Many on Wall Street in the energy complex feel that the current price of the oil benchmark could drop 10% to 15% in the event of a peace agreement to end the war. Wall Street estimated oil price levels for 2026 at the end of last year were $50 to $60 per barrel for WTI. Those estimates are now considered way too low.
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Warren Buffett and Berkshire Hathaway (NYSE: BRK-B) own only two energy stocks, but they are the kind of companies built to survive and are significant holdings in the portfolio. In addition, both are companies that Buffett and, now, Greg Abel will continue to hold indefinitely, as evidenced by Buffett adding more shares of one in a big way in the fourth quarter of 2025 and by continuing to add to the other over the last few years. That turned out to be an incredibly well-timed move as oil has vaulted higher during the war with Iran. While oil has a war premium now, that will go away when and if the United States settles the war with Iran, and there is a good prospect for that, as the fighting has severely constrained the Middle East countries' ability to sustain the conflict much longer.
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Most of Wall Street was negative on energy as we finished out 2025, with many analysts indicating that the baseline price for West Texas Intermediate in 2026 would be somewhere in the $50 to $60 range at best. Given the massive changes in the global energy complex since fighting started in late February, most top firms now expect oil to settle in the $70 to $75 range, driven by changes in exploration and production and delivery. One thing is certain: a higher global pricing level will be highly beneficial for the two companies that Berkshire Hathaway owns. Both will still be good long-term holdings for growth and income investors. One caveat for those looking to add energy exposure is to buy partial positions now and wait for a settlement between the U.S. and Iran before buying more shares. While both are off their highs reached when the attack on Iran first unfolded and offer better entry points than two months ago, oil will still drop dramatically when a permanent ceasefire and a solution are reached.
Chevron
Chevron (NYSE: CVX) is an American multinational energy company primarily focused on oil and gas. This integrated giant is a safer option for investors seeking exposure to the energy sector and pays a substantial 3.79% dividend, which was raised by 5% earlier this year. Chevron operates integrated energy and chemicals businesses worldwide through its subsidiaries. Berkshire Hathaway bought a very well-timed 8 million additional shares in the fourth quarter and now owns 130,156,362 shares, which equals 6.6% of the float and 7.2% of the portfolio.
The company operates in two segments. The Upstream segment is involved in the following:
Exploration, development, production, and transportation of crude oil and natural gas Processing, liquefaction, transportation, and regasification associated with liquefied natural gas Transportation of crude oil through pipelines, and transportation and storage Marketing of natural gas, as well as operating a gas-to-liquids plant
The Downstream segment engages in:
Refining crude oil into petroleum products Marketing crude oil, refined products, and lubricants Manufacturing and marketing renewable fuels Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives
It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.
Bank of America has a Buy rating with a $206 target price.
Occidental Petroleum
After years of building this position, Buffett and Berkshire Hathaway are finally in the money on this company, which pays a 1.82% dividend. Occidental Petroleum (NYSE: OXY) is an international energy company with assets primarily in the United States, the Middle East, and North Africa. The company is an oil and gas producer in the United States, including the Permian and D.J. basins and the offshore Gulf of America.
Berkshire Hathaway owns 264,941,431 shares, which is a stunning 26.6% of the float and 4.4% of the portfolio.
Occidental’s oil and gas segment explores for, develops, and produces oil (including condensate), natural gas liquids (NGLs), and natural gas. The midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil (including condensate), NGLs, natural gas, carbon dioxide (CO2), and power. This segment provides flow assurance, maximizes the value of its oil and gas, and optimizes the company's transportation and storage capacity. It also invests in entities that conduct similar activities, including low-carbon venture businesses.
A notable recent development was Occidental’s decision to sell its OxyChem subsidiary to Berkshire Hathaway, with the bulk of the proceeds expected to strengthen the company’s balance sheet and further concentrate its business on oil and gas. The move was especially interesting because Buffett had reportedly long been interested in OxyChem, and Berkshire now owns the business outright. Berkshire Hathaway completed its purchase of OxyChem from Occidental on January 2, 2026, giving Buffett full ownership of the chemicals business while providing Occidental with $9.7 billion in cash to reduce debt and sharpen its focus on energy.
Mizuho has an Overweight rating and a $72 price objective on this stock.
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- Berkshire Backs Domino's Pizza As Investors Weigh Valuation And Franchise Risks
May 11, 2026
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Berkshire Hathaway has built a near-10% stake in Domino's Pizza (NasdaqGS:DPZ), signaling significant institutional interest in the stock. At the same time, Domino's largest international franchisee, Domino's Pizza Enterprises, is reporting operational challenges that are affecting overseas performance. These developments introduce fresh angles for investors beyond recent valuation and earnings discussions around Domino's Pizza.
Domino's Pizza (NasdaqGS:DPZ) is a global pizza delivery and carryout company with a large franchise footprint and a heavy focus on digital ordering. Berkshire Hathaway's near-10% position puts a new spotlight on the stock and may draw more attention from institutional and retail investors who track large, concentrated holdings. For existing shareholders, this adds another piece to consider when weighing Domino's role in a broader portfolio.
On the other side of the story, the ongoing issues at Domino's Pizza Enterprises are a reminder that international partners play a key role in how the brand performs outside the US. As these operational challenges continue to filter through to international same-store sales, investors watching NasdaqGS:DPZ may want to pay close attention to how the company responds in its overseas markets.
Stay updated on the most important news stories for Domino's Pizza by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Domino's Pizza.NasdaqGS:DPZ 1-Year Stock Price Chart
See which insiders are buying and buying and selling Domino's Pizza following this latest news.
Investor Checklist
Quick Assessment
✅ Price vs Analyst Target: At US$323.48, Domino's Pizza trades about 22% below the US$414.90 analyst price target. ✅ Simply Wall St Valuation: Shares are described as trading 21.7% below an estimated fair value. ❌ Recent Momentum: The stock is down 11.6% over the last 30 days.
There is only one way to know the right time to buy, sell or hold Domino's Pizza. Head to Simply Wall St's company report for the latest analysis of Domino's Pizza's fair value.
Key Considerations
📊 Berkshire Hathaway holds a near 10% position, which signals strong institutional interest. At the same time, overseas franchise issues highlight execution risk outside the US. 📊 Watch how management addresses international operational challenges. It may also be useful to monitor valuation metrics such as the current P/E of 18.2 compared with the hospitality industry average of 20.2. ⚠️ Simply Wall St highlights two major risks, including negative shareholders' equity and debt that is not well covered by operating cash flow.
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Dig Deeper
For the full picture, including more risks and potential rewards, check out the complete Domino's Pizza analysis. You can also visit the community page for Domino's Pizza to see how other investors believe this latest news will affect the company's narrative.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include DPZ.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Where Will Berkshire Hathaway Stock Be in 5 Years?
May 11, 2026
You might have noticed that BerkshireHathaway(NYSE: BRKA)(NYSE: BRKB), the company helmed by Warren Buffett for some 60 years, recently held its annual shareholder meeting in Omaha. The meeting went well, despite the company now being run by Buffett's successor, Greg Abel, after Buffett stepped down as CEO at the end of 2025. All that might have had you wondering whether you should invest in Berkshire -- and where the company might be in five years.
Let's examine those questions.
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First, I think that investing in Berkshire Hathaway now is a solid move, as long as you plan to hang on to those shares for many years. Why? Well, the company was built to last, and has plenty of growth potential. It's also reasonably valued lately, with a recent forward-looking price-to-earnings (P/E) ratio of 22, not far off from its five-year average of 21.
Where will Berkshire be in five years?
So, what kind of growth can we expect from the company over the coming five years? Well, the stock grew by an annual average of 10.3% over the past five years, and it will very possibly perform somewhat similarly over the coming five years. So you can estimate that its stock price of $476 could grow to around $767.
Now let's look at why it's reasonable to assume continued 10% growth, on average, over a long period. For starters, the company is a conglomerate. It has scores of subsidiaries in various industries, ranging from insurance, energy, and transportation to candy, ice cream, and jewelry. Many of its businesses are rather defensive, meaning that their fortunes don't go up and down with the economy. For example, people will still need car insurance in a market pullback, and they will still need to pay for electricity in a recession.
It's the same with much of Berkshire's massive stock portfolio. Berkshire owns 9.3% of Coca-Cola, for example, and billions of people will keep drinking Coke and its other beverages regardless of the economic environment. It also owns 22% of American Express and, recently, nearly $62 billion worth of Apple stock -- and people will continue to use their AmEx cards, iPhones, and Apple Watches, too. Berkshire can be affected by economic downturns, but it's overall a sturdy business.
Some worry that things will change a lot now that Greg Abel is holding the reins. But he has explained that he aims to maintain Berkshire's culture and policies. When asked at the meeting whether he would consider breaking up Berkshire, he answered: "We see our conglomerate structure working without the bureaucracy and bloated costs... We do not see ourselves divesting subsidiaries for that reason or ever breaking off a group."
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There will likely be some changes at Berkshire, though, and one might be the institution of a dividend, if Abel thinks the company has more cash than it can use productively. (Its cash hoard was recently around $380 billion.) But overall, Berkshire will remain invested in lots of solid, growing companies, run by proven, talented managers. The future looks bright for Berkshire shareholders.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
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American Express is an advertising partner of Motley Fool Money. Selena Maranjian has positions in American Express, Apple, and Berkshire Hathaway. The Motley Fool has positions in and recommends American Express, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
Where Will Berkshire Hathaway Stock Be in 5 Years? was originally published by The Motley Fool
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- Berkshire CEO has sobering message for tech stock investors
May 10, 2026
Berkshire Hathaway (BRK.A, BRK.B) CEO Greg Abel isn’t chasing the AI trade just because everyone else is.
In his first annual meeting as Berkshire’s top honcho and Warren Buffett’s successor, he said that the company isn’t treating tech spending or tech stocks as a momentum game.
That’s the opposite of what we’ve seen transpire over the past couple of years, where the “Magnificent Seven” stocks have attracted billions in capital.
Investors have been incessant in pouring money into tech giants pursuing their respective AI-first visions.
AI leaders, including Alphabet, Amazon, Meta, and Microsoft, are on track to spend a staggering $700 billion in combined capex this year, up substantially from $410 billion in 2025.
In contrast to what the market has been about lately, Abel’s message is about restraint.
Berkshire is synonymous with discipline, and clearly, Abel isn’t looking to abandon that mantra anytime soon.
That stance also carries a ton of weight because Berkshire is now sitting on a record $397.4 billion cash pile.
It has the firepower to make massive tech stock bets and lean aggressively into AI.
Instead, Abel drew a different line at Berkshire’s 2026 annual meeting on May 2.
“We're going to be a builder of technology, rather than just a buyer of technology,” he told shareholders.
He then added,
“It has to be additive to our businesses. We're not going to have AI just to have AI.”Berkshire Hathaway’s new CEO Greg Abel signaled a disciplined approach to technology, prioritizing long-term value over AI-driven spending hypeDaniel Zuchnik/WireImage
Takeaways from CEO Greg Abel’s technology message
Technology should complement, not be a fix-on: Abel noted that tech needs to truly add value to a business, rather than simply serve as a sticker signaling AI use. Buyer mindset versus builder mindset: Berkshire is looking to go in-house with AI solutions, such as the predictive maintenance effort at BNSF Railway, rather than leaving innovation to others. The rule of capital discipline is unbreakable: "Capital discipline is the rule," said Abel, who has north of $350 billion in cash and short-term securities at his disposal, "which we will be acting decisively upon when there is a dislocation, and the price is right. Conglomerate structure is a feature, not a bug: Berkshire is structured as a decentralized organization to deploy technology without the "bloated costs" seen in traditional conglomerates.
Berkshire’s earnings history shows steady EPS strength
Berkshire’s earnings performance lately points to a strong track record of consistent EPS beats, though revenue growth has been uneven across quarters.
FQ1 2026: EPS of $5.26, beating estimates by $0.21; revenue of $92.07 billion, year-over-year growth of 2.6%. FQ4 2025: EPS of $4.73, missing estimates by $0.44. FQ3 2025: EPS of $6.25, beating estimates by $0.52; revenue of $94.97 billion, missing estimates by $2 billion, with year-over-year growth of 2.13%. FQ2 2025: EPS of $5.17, beating estimates by $0.14; revenue of $92.50 billion, beating estimates by $10.29 billion, despite a year-over-year decline of 1.22%.
Source: Seeking Alpha.
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Abel’s patience gets support from Berkshire’s Q1 numbers
Berkshire Hathaway’s Q1 2026 earnings smasher effectively reinforced Abel’s message with hard numbers.
Front and center was its operating earnings that surged 18% to $11.35 billion, led by stronger underwriting performance at GEICO and improved rail efficiency at BNSF.
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As mentioned earlier, Berkshire’s cash position reached a record $397.4 billion.
On top of that, operating cash flow topped $10.4 billion, while share repurchases totaled only $234 million, which remains relatively small relative to the balance sheet's size, showing a continued emphasis on disciplined capital allocation.
Magnificent 7 performance shows uneven market strength
Tesla: 3-month change: +4.31%; year-to-date change: -4.65%; YTD high: $458.34 Nvidia: 3-month change: +16.23%; year-to-date change: +15.55%; YTD high: $217.80 Apple: 3-month change: +5.10%; year-to-date change: +7.52%; YTD high: $294.71 Alphabet Class A: 3-month change: +23.44%; year-to-date change: +27.33%; YTD high: $401.37 Alphabet Class C: 3-month change: +22.40%; year-to-date change: +26%; YTD high: $398. Amazon: 3-month change: +29.62%; year-to-date change: +18.11%; YTD high: $278.56 Microsoft: 3-month change: +3.68%; year-to-date change: -14%; YTD high: $489.70 Meta Platforms: 3-month change: -8.19%; year-to-date change: -8%; YTD high: $744.
Source: Barchart.
Berkshire keeps technology spending disciplined
Abel essentially drew a line between useful tech tools and expensive hype.
“The entire Berkshire franchise is touched by it,” he said, noting that tech is actually playing a key role across the company’s businesses.
For instance, its insurance units study predictive analytics, while BNSF uses data to consistently improve rail operations.
Nevertheless, Berkshire hasn’t by any means rushed into major AI face-lift projects or related investments just because the market’s been obsessed with the technology.
We can see that discipline from BNSF and its most recent report.
For instance, BNSF moved 2.408 million cars and units in Q1, up 2.2% from a year earlier, while operating margins improved on the back of higher volumes, pricing gains and better productivity.
Tariffs and geopolitical pressure were also cited as headwinds, especially in areas like chemicals and energy, but Berkshire’s broader approach has not changed.
Related: Goldman Sachs sets jaw-dropping AMD stock price target after earnings
This story was originally published by TheStreet on May 10, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.
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- My Top 3 Financial Stocks for May 2026
May 10, 2026
Financials aren't usually the most exciting stocks on Wall Street, but they do tend to be solid and reliable. That's why Berkshire Hathaway is full of them. Many of the top ones meet Warren Buffett's criteria of playing a long-term role in the economy, and they're often flush with cash and pay dividends.
If you're looking for excellent stocks of this nature to fill gaps in your portfolio right now, consider Visa(NYSE: V), JPMorgan Chase(NYSE: JPM), and Progressive(NYSE: PGR).
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1. Visa
Visa is the largest credit card network in the world, with 4.9 billion payment credentials, or cards of all kinds, as of the end of 2025. That's up from 4.6 billion the year before. Visa isn't just the biggest; it also continues to grow its user base at a rapid pace.
Its model lends itself to high-profit growth. Since it plays such a large role in the economy, as the basis for so much spending, it does well when the economy does. Since the economy expands more often than it contracts, Visa typically does very well. As for being profitable, since it partners with financial institutions and doesn't actually lend money, it has lower exposure to defaults. As a service provider, it has high margins, and its profit margin was 53% in the 2026 fiscal second quarter (ended March 31).
But these days, it's more than just a credit card network. It provides data analytics services and different kinds of payments, and it's performing phenomenally despite economic pressure, with a 17% year-over-year increase in the second quarter.
2. JPMorgan Chase
JPMorgan Chase is the largest bank in the U.S., and it's the biggest by far, with $3.7 trillion in assets. That's well above the No. 2 competitor, Bank of America, which has $2.6 trillion, and more than the third- and fourth-largest banks combined. That indicates how stable it is and how much Americans count on it.
The bank continues to dominate U.S. finance throughout economic cycles, with robust consumer and commercial businesses. It has what it calls an "exceptional" return on tangible common equity (ROTCE) of 23% as of the first quarter, which puts it in a class of its own.
It benefited from a strong American consumer despite inflation and strong market activity. Revenue increased 10% year over year in the first quarter, and net income was up 13%.
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3. Progressive
Progressive is one of the largest U.S. insurance companies, covering all kinds of policies, including homeowners, auto, and more. Since it's an insurance company, its business is cyclical, but it continues to grow, and it has been an incredible market beater over time.
Net premiums written, its top-line metric, increased 6% year over year in the first quarter, and earnings per share rose from $4.37 to $4.80. Its combined ratio was 86%, well below its target goal of 96. It makes money on more policies as well as on the interest it gets from the float, or the payments for policies that it doesn't pay out, which is why insurance companies can be so profitable.
Progressive stock is down this year on worries about a "softer" insurance industry, which is why now is a great time to load up on shares.
Should you buy stock in Visa right now?
Before you buy stock in Visa, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Visa wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
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*Stock Advisor returns as of May 10, 2026.
Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, JPMorgan Chase, Progressive, and Visa. The Motley Fool has a disclosure policy.
My Top 3 Financial Stocks for May 2026 was originally published by The Motley Fool
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- New York Times: More Than Just News, But Is the Valuation Good Enough?
May 10, 2026
This article first appeared on GuruFocus.
Berkshire Hathaway's (NYSE:BRK.B) (NYSE:BRK.A) new Q4 positions have just been revealed, and one name in particular caught my attention. We saw some moves that management was already making, selling Apple (AAPL) and buying companies like Chevron (CVX) and Domino's (DPZ). But in addition to the company selling Amazon (AMZN) shares, which is a move that surprised me a little, Buffett started a position in New York Times (NYSE:NYT), worth $351 million.
It is not a significant position, but it is a new name, and from a distance, it seems to have something to do with the overall movement of the portfolio away from tech and toward more traditional things, such as pizza, newspapers, and oil.
The oil and pizza part is not such a big surprise, but NYT was not really something that was on my radar, and the company surprised me positively in some respects, although I still don't think it's enough to be optimistic about the stock.
The New York Times: Definitely Not A Dying Company
It was difficult for me to understand the New York Times business as a whole just knowing the company through its news business, and I think many still believe it is a business with poor prospects, since the "peak" of print newspapers and similar has definitely passed, and the digital landscape is very competitive.
This was quite surprising for me, and it may surprise you too, but the NYT business is actually quite interesting, with high margins, and the market even seems to assign it a "premium" valuation (this is the part I dislike).
Of course, if we look at the chart below, we can see that the peak has already passed for the NYT business, but in recent years, the turnaround has been successful, and the market is estimating a new peak for the revenue in the near future.New York Times: More Than Just News, But Is the Valuation Good Enough?
GuruFocus
At the beginning of the presentation, it is already clear that NYT's management is executing well and delivering on its promises. The outlook for the digital subscription segment was to grow between 13% and 16%, and it grew ~14%, but more importantly, digital advertising revenue was expected to be in the high teens, and what was delivered was 25%. In addition, the NYT added 450k subscribers in just one quarter and now has ~12.8 million subscribers.New York Times: More Than Just News, But Is the Valuation Good Enough?
NYT Presentation
Other than that, NYT subscriptions have a mix that I find very interesting, since bundle and multiproduct subscriptions are growing (from around 48% to 51%), while subscriptions to more "simple" products, such as news only, are falling. I.e., NYT is managing to take advantage of upsell/cross-sell opportunities.
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Today the NYT already has other products such as Wirecutter, which focuses on independent reviews, audio journalism products, showing a certain diversification and that it already has an ecosystem, which is great for the prospects and to judge the "quality" of the business.
All this while adj. operating costs grew less than 10%, meaning the NYT managed to gain some margin, more specifically, 0.5 p.p. in adjusted terms, not to mention that with the reduction in shares, adj. EPS went from $0.8 in Q4 2024 to $0.89 in the last quarter, an 11% growth.
Cash flow is another very important point, and may be why Berkshire "fell in love" with NYT stock. We are not talking about a business that needs high CapEx, and with these good margins, there is still a lot left over for shareholders.
For instance, In 2025, OCF was $580 million, and CapEx was around $30 million, meaning there was still about $550 million left for shareholders, and NYT recently mentioned that in the medium term it wants to return at least 50% of its FCF to shareholders.New York Times: More Than Just News, But Is the Valuation Good Enough?
NYT Presentation
NYT's Valuation: Not That Good
One of the problems with the case and why I don't have a bullish sentiment for NYT stock is its valuation. The $550 million in free cash flow looks great, but the market cap is almost $12 billion. In other words, the free cash flow yield here is ~4.6%. Even if the company returns this via buybacks and dividends, the shareholder yield should be somewhere around 2.3%.
So even if we consider that the company is growing its top line by ~10% and gradually increasing its margin, in order to believe that substantial shareholder value is being created, we would need to believe that it will be able to maintain this pace of growth not for 5 years, but for 10, 15, 20 years in a sustainable manner.
In this scenario, where year after year the NYT manages to compound its fundamentals, then the valuation becomes attractive. But as there is still some uncertainty and the business is far from being a wide moat company like Costco (COST), I think the valuation is not good enough.
For instance, NYT stock is now significantly overvalued according to the GF value. In fact, it is 38% higher than the GF value. And we're talking about a forward P/E of 27.7x, even if we consider the healthy growth, it is still a high valuation. Not surprisingly the Value rank is only 5/10. It is a high valuation vs. the industry and also vs. the industry. Even the EV-to-EBITDA is high, above the 20x.
GuruFocus
If the NYT manages to unlock some relevant optionality, such as receiving compensation in the amount of hundreds of millions from LLM companies, or at least reaching some agreement for the licensing of this content on a large scale, then we could be talking about a certain level of asymmetry (but also very uncertain).
I'm Not So Sure About NYT's Future
As I mentioned, NYT's operational side is going very well, they are making some good investments, improving their products, and I believe there will be tailwinds such as video journalism and demand for audio, i.e., this may increase ARPU and subscribers. The news, videos, and audio are where I see the most value, well-done journalism that, even if it competes with other platforms, including YouTube, is still something that can have value, almost like streaming.
But still, I also see some uncertainties for the rest of the sales. My first example is the NYT Cooking, the subscription costs about $25 per year. It's quite cheap, especially when you consider that an LLM charges that much per month. But if we think about trends in AI assistants, would you really open the NYT website to see recipes or would you just ask Gemini on your smartphone?
But even though I think AI will evolve, I don't think it will reach a point where all information is commoditized, and we are talking about NYT, one of the greatest in this industry.
NYT is involved in some lawsuits precisely because some AI models would have access to paid content without paying for it, apart from the alleged training in models without the NYT's authorization. Think of a scenario where a LLM can infer information without paying the NYT paywall, sending this quality info to the user without the NYT being paid, awful for NYT's top line.
On the other hand, this part of AI also ends up becoming an optionality. If everything works out for the NYT to get paid in the meantime, greatly increasing its content licensing revenue, and at the same time using AI to generate more engaging and even higher quality content, it ends up being more of a tailwind than a headwind in my view.
Mainly because we are talking about something close to an IP, and my guess is that regulations will move in a direction that allows the NYT to defend its IP.
They also addressed this topic in the earnings call, and I believe it is more or less similar to what I think, it is still uncertain, but in the long run it could be a tailwind:
I would say on AI, we continue to see headwinds. We've been talking about that for a while now. But our strategy of building differentiated products at scale, which are worthy of seeking out and building assets which make us really resilient to those headwinds in a rapidly changing and a pretty low trust ecosystem.
And over the long term, we believe what we do is going to be even more valuable to consumers and to business partners and ultimately, even the LLMs themselves in an information ecosystem where it's harder and harder to find things that are true and valuable and worthwhile.
[...] We've got an AI-powered ad product that is really working. So we're already sort of harnessing AI in effective ways to make the business more productive and build our engaged audience.
Guru Activity
Well, as already mentioned, the most interesting Guru Activity about the NYT was the one about Berkshire. Warren Buffett (Trades, Portfolio) (Trades, Portfolio) made a New Buy, around 5 million shares. It is worth mentioning that since Berkshire bought in Q4, it is quite possible that it bought NYT stock at a price much closer to $57 than the $74 we are currently seeing, meaning it was much easier to justify a margin of safety a few months ago.
But that wasn't the only buy. Joel Greenblatt (Trades, Portfolio) (Trades, Portfolio) also increased his position by 90%. Even though these are small positions for both investors (mainly for Greenblatt, with only ~350,000 shares), it's still a rather interesting endorsement.
The Bottom Line
Since there are several managers within Berkshire, it's hard to know when Buffett is really involved in buying a stock, but this may have been one of his last moves as CEO. And although I see some sense in this move, since NYT is a very renowned company, has interesting growth prospects, and a minimally reasonable valuation if we count on some optionalities, I don't think the stock is very attractive at the moment.
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- The golden spike 2.0: Union Pacific bets $85B to finish what it started in 1869
May 10, 2026
[Old West]
tness74/iStock via Getty Images
Today is a historic date in the history of the railroad industry. On the morning of May 10, 1869, a crowd gathered at a desolate stretch of Utah Territory called Promontory Summit. Two locomotives faced each other on a single track, separated by one final rail. Workers from the Central Pacific and Union Pacific (UNP [https://seekingalpha.com/symbol/UNP]) railroads witnessed a ceremonial golden spike connect the two tracks to create a transcontinental railroad. The occasion was marked by church bells ringing in San Francisco and cannons being fired in New York City.
[UNP]
Union Pacific
The transcontinental railroad shortened weeks of dangerous wagon travel into days of much easier passage and helped to open the American West to settlement and commerce. Over the generations that followed, the American freight rail system evolved into a patchwork of regional carriers divided largely between East and West. For the last 100 years, shipments crossing the country still required handoffs between competing railroads, adding time, cost, and complication.
Exactly 157 years since the golden spike connected the continent, the same Union Pacific brand exists after a series of mergers and bankruptcies that included a corporate lineage of Union Pacific Rail Road (1862–1880), the Union Pacific Railway (1880–1897), the Union Pacific Railroad Mark I (1897–1998), and the Union Pacific Railroad Mark II (1969–present).
Today, Union Pacific (UNP [https://seekingalpha.com/symbol/UNP]) and Norfolk Southern (NSC [https://seekingalpha.com/symbol/NSC]) want to create America's first true transcontinental railroad being run by a single company. By combining Union Pacific's expansive western network with Norfolk Southern's deep reach into eastern manufacturing and population centers, the two companies would stitch together over 50K route miles across 43 states. If regulators approve the deal, the single-line freight service will run coast to coast, with no handoffs, a development that would disrupt the rails and trucking industries.
TRUCKING STOCKS: Knight-Swift Transportation (KNX [https://seekingalpha.com/symbol/KNX]), USA Truck (USAK), Marten Transport (MRTN [https://seekingalpha.com/symbol/MRTN]), ArcBest (ARCB [https://seekingalpha.com/symbol/ARCB]), Old Dominion Freight Line (ODFL [https://seekingalpha.com/symbol/ODFL]), Werner Enterprises (WERN [https://seekingalpha.com/symbol/WERN]), TFI International (TFII [https://seekingalpha.com/symbol/TFII]), Landstar System (LSTR [https://seekingalpha.com/symbol/LSTR]), Schneider National (SNDR [https://seekingalpha.com/symbol/SNDR]), J.B. Hunt Transport Services (JBHT [https://seekingalpha.com/symbol/JBHT]), and Heartland Express (HTLD [https://seekingalpha.com/symbol/HTLD]).
RAILS STOCKS: Union Pacific (UNP [https://seekingalpha.com/symbol/UNP]), Norfolk Southern (NSC [https://seekingalpha.com/symbol/NSC]), CSX (CSX [https://seekingalpha.com/symbol/CSX]), Canadian National Railway (CNI [https://seekingalpha.com/symbol/CNI]), and Canadian Pacific Kansas City (CP [https://seekingalpha.com/symbol/CP]). BNSF Railway is owned by Berkshire Hathaway (BRK.A [https://seekingalpha.com/symbol/BRK.A]) (BRK.B [https://seekingalpha.com/symbol/BRK.B]).
MORE ON UNION PACIFIC AND NORFOLK SOUTHERN
* Union Pacific: This High-Quality Railroad Stock Is A Long-Term Play [https://seekingalpha.com/article/4895639-union-pacific-high-quality-railroad-stock-long-term-play]
* Norfolk Southern Corporation (NSC) Q1 2026 Earnings Call Transcript [https://seekingalpha.com/article/4893982-norfolk-southern-corporation-nsc-q1-2026-earnings-call-transcript]
* Norfolk Southern: Watch It, But Union Pacific Is The Better Trade In The Deal Now (Earnings Review) [https://seekingalpha.com/article/4894011-norfolk-southern-watch-it-but-union-pacific-is-better-trade-in-deal-now-earnings-review]
* Union Pacific, Norfolk Southern say a transcontinental rail deal would cut trucks on the road [https://seekingalpha.com/news/4582737-union-pacific-norfolk-southern-say-transcontinental-rail-deal-would-cut-trucks-on-the-road]
* Rails rivals, unions unite to block the Norfolk Southern-Union Pacific merger [https://seekingalpha.com/news/4581940-rails-rivals-unions-unite-to-block-the-norfolk-southern-union-pacific-merger]
- Warren Buffett's Successor Greg Abel Just Broke This 13-Quarter Streak at Berkshire Hathaway. Could This Be a Turning Point for the Stock Market?
May 9, 2026
Warren Buffett is one of the greatest investors in history. He spent over 70 years publicly managing money, including 60 years at the helm of Berkshire Hathaway(NYSE: BRKA)(NYSE: BRKB). But the last three years before he retired were marked by behavior that many investors couldn't help but notice.
In each of Buffett's last 13 quarters in charge of Berkshire's massive equity portfolio, he sold more stock than he bought. The result was a massive increase in cash, which climbed from $129 billion at the end of 2022 to $373 billion by the time Buffett left. The selling behavior had a clear implication: Most stocks that held Buffett's interest were expensive.
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Newly installed CEO Greg Abel continued selling stock during the first quarter of 2026, but a few big purchases may have ended the streak. Buffett is still advising Abel on investments, and investors may be wondering whether the shift toward buying more is a sign that he finally sees opportunities in this market.Image source: Getty Images.
What is Greg Abel buying and selling?
Abel and co-manager Ted Weschler bought almost $16 billion of marketable equities in the first quarter. That's nearly as much as Buffett spent on equities in all of last year. To be sure, the departure of Todd Combs at the end of last year and Weschler taking over a larger portion of the portfolio likely led to more buying and selling than in a usual quarter. But the increase may also indicate that Abel sees more opportunities in today's market.
That said, Berkshire sold over $24 billion worth of equities last quarter as well. As mentioned, that likely includes selling off a large amount of Combs' investments.
Readers may look at those numbers and note that the amount of equities sold last quarter still exceeds the amount purchased. However, Berkshire also purchased OxyChem from Occidental Petroleum last quarter for $9.7 billion. That's noted in a line item on Berkshire's cash flow statement called "Acquisitions of businesses, net of cash acquired."
That line item is typically only included in Berkshire's annual reports. The inclusion in last quarter's report seems intentional, as if to signal to investors that Berkshire is indeed deploying capital for shareholders. And when you add the OxyChem purchase to Berkshire's other stock purchases, it outweighs the equity sales last quarter.
Story Continues
In other words, Berkshire Hathaway spent more money buying businesses or pieces of businesses last quarter than it received from selling them for the first time since 2022.
Is it time to start buying stocks?
The significant amount of capital deployed in stocks may be a good signal that there are opportunities for investors in the current market. While not everyone can push a massive company to spin off a valuable piece of its business to invest a huge chunk of capital, investors looking for value in today's market can still find it.
Those opportunities are few and far between, though. Buffett recently said, "It isn't our ideal ... environment, I should say, in terms of deploying cash for Berkshire," in an interview at the annual shareholder meeting.
The feeling that much of Berkshire's marketable equity portfolio may be overvalued is further echoed in Abel's share repurchase behavior. After announcing the resumption of Berkshire's share repurchase program in March, Abel bought back a mere $238 million worth of stock. That's despite the stock dropping to a price-to-book ratio it hasn't seen in over two years. In other words, Abel might not think the book value of the company's equity portfolio (i.e., the market prices) is an accurate reflection of their true value.
If he continues to hold that position, Abel and Weschler could resume selling more stocks than they buy in future quarters.
Still, it's important to understand the constraints that can prevent Berkshire from buying every opportunity the market presents. First and foremost, Berkshire has hundreds of billions of dollars in cash to deploy. It wants to invest billions at a time. Most investors aren't making market-moving purchases.
Second, Buffett admits he doesn't follow a large swath of companies, particularly tech companies, because he doesn't understand them as well as his competitors do. Abel may be similarly inclined to focus on the businesses he understands best. There may be great opportunities in Berkshire's blind spots.
So, while Buffett and Abel seem to think it's still not a great opportunity to buy stocks, investors willing to do the work, research companies, and develop an expertise can still find great value. After all, Abel did deploy billions in capital last quarter. You could probably find a way to deploy a few hundred dollars.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
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Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
Warren Buffett's Successor Greg Abel Just Broke This 13-Quarter Streak at Berkshire Hathaway. Could This Be a Turning Point for the Stock Market? was originally published by The Motley Fool
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- Brookfield Corporation Looks More Like Berkshire Hathaway Every Year. Is It Time to Buy?
May 9, 2026
Brookfield Corporation (NYSE: BN) has long been one of my favorite companies. The global investment firm has an exceptional record of creating value for investors. Over the last 30 years, Brookfield has delivered an annualized total return of 19%. That has outpaced the S&P 500 and Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), which have both delivered roughly 11% annualized returns.
I think Brookfield looks more like Berkshire Hathaway every year. Here's what drives that view and whether now is the time to buy the financial stock.
Will AI create the world's first trillionaire? Our team just released a report on a little-known company, called an "Indispensable Monopoly," providing the critical technology Nvidia and Intel both need.
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Taking a page out of Berkshire's playbook
Brookfield has built a global investment firm around three platforms:
Alternative investment management: Brookfield has a 73% interest in one of the world's leading alternative asset management firms, Brookfield Asset Management. Wealth solutions: The company has built an insurance-focused wealth solutions platform from the ground up over the past several years. Operating businesses: Brookfield has a portfolio of operating businesses built around infrastructure (Brookfield Infrastructure), energy (Brookfield Renewable), private equity (Brookfield Business), and real estate (Brookfield Property).
Brookfield's portfolio of operating companies reminds me a lot of Berkshire Hathaway. Like Berkshire, it invests in energy, railroads, and manufacturing and industrial assets. Brookfield has also started investing in insurance companies in recent years (largely focused on annuities). The company uses the earnings these businesses generate (and the insurance float) to invest capital in growing shareholder value. However, while Berkshire primarily invests its capital in new operating businesses and publicly traded stocks (e.g., Coca-Cola and Apple), Brookfield predominantly invests in its private funds and commercial real estate.
A compounding machine on steroids
Brookfield Corporation has grown its distributable earnings from $2.7 billion in 2021 to $5.3 billion last year, a robust 22% compound annual growth rate over the last five years. The biggest driver has been the addition of its wealth solutions platform, which has been a significant growth catalyst over the last three years.
The company believes the next five years could be even better. A major catalyst is its strategic focus on AI infrastructure investment. The company sees a once-in-a-generation opportunity to invest in building the backbone infrastructure to support AI. One way it's doing that is by investing in AI factories (specialized AI data centers). Brookfield is a cornerstone investor in the Brookfield Artificial Intelligence Infrastructure Fund (managed by Brookfield Asset Management), which aims to invest up to $100 billion in AI infrastructure assets. Additionally, many of Brookfield's operating businesses are investing in supporting the digitalization trend (Brookfield Infrastructure is investing in semiconductors and data centers, while Brookfield Renewable is investing in expanding power generation capacity).
Story Continues
In addition to AI infrastructure, Brookfield sees significant growth potential from individual investors increasing their allocations to alternative investments and from the global real estate recovery. These and other catalysts drive the company's expectation of delivering 25% compound annual earnings-per-share growth over the next five years. Brookfield expects its strategy to grow the company's value to $140 a share by 2030, up from its current estimated value of $68 (and well above the recent $50 share price).
Brookfield is a buy
Brookfield expects to deliver robust earnings growth over the next several years as it capitalizes on the AI infrastructure megatrend. With its shares currently trading below its estimated intrinsic value, Brookfield looks like a screaming buy. I fully expect it to continue outperforming Berkshire in the future.
Should you buy stock in Brookfield Corporation right now?
Before you buy stock in Brookfield Corporation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Brookfield Corporation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 9, 2026.
Matt DiLallo has positions in Apple, Berkshire Hathaway, Brookfield Asset Management, Brookfield Corporation, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, and Coca-Cola and has the following options: short July 2026 $40 puts on Brookfield Corporation and short May 2026 $280 calls on Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Brookfield Asset Management, and Brookfield Corporation. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
Brookfield Corporation Looks More Like Berkshire Hathaway Every Year. Is It Time to Buy? was originally published by The Motley Fool
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