This Headline Changed My Morning

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Arigato, dear investor,

I was sipping my morning coffee, scrolling through Morning Brew (a fantastic source for bite-sized daily news) when a breaking headline stopped me in my tracks:

The details were sobering. Nearly 200,000 people have been forced to evacuate, with 2,000+ buildings destroyed or damaged. Insurance losses could exceed $20 billion, making this potentially the costliest wildfire in U.S. history.

My immediate reaction? I checked Berkshire Hathaway’s (Warren Buffett’s company) stock price. As you might know, Warren Buffett’s company is one of the largest players in the insurance world. When disaster strikes, insurance companies bear the brunt of the losses—and Berkshire’s stock price had indeed taken a hit in the last few days.

But then I asked myself: Is this danger…or opportunity?

Let’s Look at the Facts

1️⃣ Berkshire’s Cash Mountain
At the end of Q3 2024, Berkshire had a record-breaking $325.2 billion in cash reserves. If these wildfires lead to insurance payouts, Berkshire has more than enough to cover the losses.

2️⃣ The Real Impact
Further digging revealed that Berkshire's estimated losses are around $600 million—less than a drop in the ocean compared to its vast insurance capital. Plus, wildfires often lead to higher insurance premiums, which could benefit Berkshire in the long term.

3️⃣ Chart Analysis with the Options 360 Indicator
Finally, I pulled up Berkshire’s chart on the Options 360 Indicator. It showed a green arrow, signaling strong momentum for a potential rebound.

What’s the Lesson Here?

When bad news hits, it’s easy to react emotionally. But this morning reminded me of a valuable lesson:

Bad news can sometimes reveal good opportunities.

The next time the market panics, take a step back. Look deeper. Study the facts. Often, moments of fear are when the best opportunities appear for those who stay calm and think long-term.

And if you’re like me and love starting your day with easy-to-digest news that keeps you informed, Morning Brew is a great place to start. It’s my go-to for staying sharp while sipping my coffee. 😊

Here’s Why Over 4 Million Professionals Read Morning Brew

• Business news explained in plain English

• Straight facts, zero fluff, & plenty of puns

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See for yourself

Stay curious, stay inspired, and always look for opportunities—because they’re often hiding in plain sight.

Arigato!

Chloe
Arigato Investor

P.S. What do you think about Berkshire’s recent price drop? Is it a risk or an opportunity? I’d love to hear your thoughts! 😃