3 Berkshire Hathaway Holdings to Buy While They Sit at Least 15% Below Their Highs

The article highlights American Express, The New York Times Company, and DaVita as value-oriented Berkshire Hathaway holdings, citing second-quarter revenue growth of 10%, 11%, and 11%, respectively. DaVita’s diluted EPS rose to $4.02 from $2.58 a year earlier, while its shares were up 58% for the year; American Express and The New York Times shares were down 18% and 8%, respectively. The article presents the companies’ business strengths and results as a case for buying and holding their stocks.

Analysis

The useful signal is not Berkshire’s endorsement but the different risk engines behind these three businesses. AXP’s premium positioning can support pricing and recurring fee revenue, yet a higher annual fee is only accretive if renewal and engagement hold after rewards costs; management’s customer-growth claims need confirmation in retention, spend per cardmember, and credit-loss data. The downside is asymmetric if affluent spending weakens while benefit costs remain sticky. Berkshire’s exits from MA and V are not evidence that the networks have lost their structural advantage: they carry different credit exposure, so the portfolio change is a poor standalone relative-value signal.

NYT’s digital mix reduces dependence on print, but the moat is conditional on maintaining direct subscriber relationships. AI-driven answer products and platform distribution could weaken search referrals or ad monetization before subscription churn appears; watch digital subscriber additions, ARPU, and ad yield rather than headline revenue growth. DVA’s operating improvement is more exposed to reimbursement, labor, and payer mix than a simple chronic-demand thesis implies. GLP-1 adoption could reduce future disease progression, but any volume effect is a multi-year question, not a near-term earnings call. After the reported rally, the article offers no valuation evidence to justify chasing DVA.

The contrarian point: Berkshire ownership and pullbacks from highs are not valuation catalysts. With no multiples, cash-flow conversion, or forward guidance supplied, this is a watchlist update—not a broad buy signal. Near-term moves depend on results and guidance; structural risks play out over quarters to years.

Key Decisions for Investors

• AXP: Avoid buying solely on the drawdown or Berkshire association. Consider a staged long only if upcoming results confirm cardmember retention/spend and stable credit losses; reassess if delinquencies or charge-offs rise, or fee growth is offset by rewards expense and churn.
• MA/V versus AXP: Do not treat Berkshire’s exits as a fundamental short signal. For a relative-value position, first compare valuation and growth; favor MA/V over AXP only if the thesis is lower credit sensitivity and payment volume remains resilient.
• NYT: Hold/watch rather than chase on reported digital growth. Track digital subscriber net adds, revenue per subscriber, and digital ad yield; deteriorating acquisition economics or sustained referral weakness would challenge the moat thesis.
• DVA: Avoid chasing the sharp share-price advance without valuation support. Monitor reimbursement updates, labor costs, payer mix, and treatment volumes; revisit the long thesis if margins weaken, and treat any GLP-1-driven reduction in disease progression as a longer-term risk to verify.