Buffett Buys UnitedHealth, should you? | The Google Listing with a Twist Turns 21
🌍 Worldwide Markets Ep. 644 – 20 August 2024 🎙️ Hosted by Simon Brown This week’s episode dives into Buffett’s latest moves, Google’s iconic IPO, and big results from Standard Bank, MTN, and Sasol. Here’s what you need to know: 📈 Buffett Buys UnitedHealth – Should You Follow? Berkshire Hathaway picked up UnitedHealth (UNH). Stock has fallen from $600 → $308 due to federal investigations ⚖️. On paper, valuation looks attractive: Forward PE ~19 (below long-term average). Price-to-book ~2.9 vs decade average of 4.9. Analysts split: 2 sells, 5 holds, 12 buys, 6 strong buys. ⚠️ Simon’s take: “Don’t blindly follow Buffett. Healthcare is a regulatory minefield. Use it as a starting point, not a buy signal.” 🩺 Healthcare Investing Alternatives Johnson & Johnson* (JNJ) – more stable exposure. Healthcare services & REITs (e.g. hospitals, medical equipment). ETFs on JSE: Satrix Healthcare Innovation ETF (STXHLT). Signia’s healthcare exposure sits in their active funds. Note: Active ETFs will soon be added to local databases ✅. 🏦 Standard Bank Results ROE: 19.1% – huge number. Forward PE: 8 (cheap vs historical 10.1). Dividend yield: 6.6% 💰. Price-to-book: 1.4 (in line with decade average). Expanding strongly across Africa 🌍. Simon: “Boring, quality portfolio stock. I like it, but waiting for cheaper entry near 240.” Standard Bank | Weekly 📱 MTN Results Headline numbers looked great due to base effects from currency collapses in Ghana 🇬🇭 & Nigeria 🇳🇬. Market unimpressed: stock fell 8% 📉. Still strong 1-year return: +77% (incl. dividends +83%). Forward PE ~13.5 vs long-term 25 → appears undervalued. Risks: exec churn, CAPEX-heavy, regulatory hurdles. Simon: “Not a fan of telcos – data is just a utility.” 🛢️ Sasol Update Stock bounced from R50 → R100. Weak oil price outlook could hurt 📉. Operations improving, second-half expected stronger. Simon’s take: “Not a long-term hold. More of a trade: buy around R100, maybe ride it to R140, then get out.” 🔎 Google’s IPO Turns 21 🎂 IPO’d in 2004 via Dutch Auction – gave retail investors equal footing vs institutions. Raised $1.66bn at $85/share. Today’s market cap ~ $2.5 trillion 🤯. Return: ~8,000% since IPO 🚀. Fun fact: for years, Domino’s Pizza IPO (same week) had similar returns 🍕 vs 🔍, but Google pulled ahead. Regulatory cloud: pending US judgment in August could hit stock short term ⚖️ → Simon says: “If it falls, I’ll be buying.” 💡 Key Takeaways Don’t just copy Buffett – do your homework 📝. Healthcare remains risky but ETFs & REITs offer cleaner exposure. Standard Bank looks solid, MTN looks risky, Sasol looks tradable. Google’s IPO remains one of the best investments of all time – and could still offer value despite regulation headwinds. 👉 Worldwide Markets is powered by Standard Bank Global Markets and Shyft – the app that gives you the cheapest forex rates anytime, anywhere 🌍📱. Simon Brown * I hold ungeared positions. All charts by KoyFin | Get 10% off your order
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