Berkshire Hathaway Announces New Stake in Restoration Hardware, Sets Up Trading Opportunity
On April 2, I published an article, titled “Time to Change My Mind About Restoration Hardware.”
If you acted on this advice, you’re a lot richer today.
Here’s a quick review…
In April, I noticed that Restoration Hardware (NYSE: RH) shares were falling on earnings – and reported:
Last week, shares of the companyfell more than $28 after 2019 earnings guidance came in just under $9, against the expectation of $10. Its stock dropped 20% on the news, and management blamed “negative trends in the high-end housing market.”
In response to this drop, I said…
Wall Street (on occasion) tends to overreact. This might be one of those times, and it allows us to get in on a strong stock for a far better price than before… I view this as a second chance to correct my thinking and a second opportunity to get into Restoration Hardware.
On that day, the action plan was simple. I said…
If we can see some stabilization in Restoration Hardware stock, a possible move above $105 might be where I’d start dipping a toe into the water. This earnings overreaction gap has quite a lot of room to fill.
Here’s what the Restoration Hardware chart looked like when this alert was posted:
Fast-forward to today…
It was just reported that Warren Buffett – and Berkshire Hathaway – revealed a new investment stake in Restoration Hardware of 1.2 million shares as of the end of Q3.
This investment makes them the fourth largest shareholder in the hardware company – but it’s still considered “small” for Berkshire Hathaway.
So there still could be more to come. On this news, shares of Restoration Hardware are exploding.
Here’s the chart…
Action Plan: If you acted on my $105 Restoration Hardware entry price recommendation back in April, you’re now looking at an 80% gain. And that’s just on the stock – this advice came from a free letter!
Just imagine what you could be making if you were a War Room member. Actually, forget that. You don’t have to imagine – I can show you what members are saying right now!
“Hello Bryan, I am a newcomer (3 months) and today I made over $18K by playing on RH. I have made many times more than what I paid for the service. Thank you and keep up the GREAT work.” – Maasho F.
“My account is up $4,174.50 today all due to WR recommendations! Long live The War Room!” – Mark P.
“In at $3.20 out at $11.07.” – Keith K.
“In at $2.75 out $11.00.” – Lynn M.
“RH bought @ $3.10 another @ $1.80 Sold both @ $12.00.” – Daljit S.
“Held my RH calls from last week, closed out 175% 🙂” – Adam K.
“I made a killing on RH calls.” – James D.
If you want to start making $18,000 on plays like this (like fellow “newcomer” Maasho from above), then you’re invited to join me in The War Room today!