Good morning! Stocks on my radar so far today, guided by your suggestions, are:

1:30pm: Edited this list in response to reader requests.

Berkshire Hathaway ($BRK.B)

(Please note that I have an indirect interest in Berkshire Hathaway)

I finally got around to reading the Berkshire Hathaway annual letter to shareholders this weekend (it had been released the previous weekend). You can find it at this link.

The full dissection of this letter and the accompanying results would be worthy of an article in its own right, but the most important metric is perhaps the $116 billion in cash and short-term T-Bills held by Berkshire at year-end 2017. That is very significant, even for a company with $700 billion in assets and $350 billion in equity. Cash and T-Bills have increased from $86 billion a year ago.

The reason for this is that Buffett, Munger & Co. are in a mode of maximum caution, warning that valuations are high and that exuberance is irrational. The only stock they seem to have bought much of over the past year is Apple ($AAPL) - and they did buy lots of it, about $14 billion worth.

Even for those of us far away from the US and trading in small-caps rather than Buffett's big-caps, I think it pays to be aware of general conditions. And it can be very painful holding cash in your portfolio, when there are lots of interesting stocks you want to buy. But if it's good enough for Warren, then it's good enough for me.

Zoo Digital (LON:ZOO)

  • Share price: 77p (+12%)
  • No. of shares: 74 million
  • Market cap: £57 million

Trading Statement

A nice update from this digital agency:

The Company is pleased to announce that growth has continued into the second half of the financial year with full year revenue expected to be at least $28m (year ended 31 March 2017: $16.5m). Adjusted EBITDA* for the full year is expected to be ahead of market expectations and at least…

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