Warren Buffett’s Berkshire Hathaway got upgraded at Edward Jones as the conglomerate’s recent sell-off made the conglomerate’s shares attractive. Edward Jones analyst James Shanahan boosted Berkshire’s rating to buy from hold Wednesday, while adding the stock to the Wall Street firm’s “U.S. Stock Focus List.” The move followed a 6% decline over the past month amid concerns about rate hikes and the economy. The Class A stock has pulled back 22% from its all-time high reached in March. “We believe that the sell-off has created an attractive entry point for long-term investors, as Berkshire revenues and earnings benefit from a diverse group of operating companies and investments,” Shanahan said. The conglomerate’s operating business is a patchwork of companies spanning from railroads, to batteries, insurance, home furnishing and retail. Berkshire also manages an equity portfolio worth well above $300 billion. Berkshire’s operating profits jumped 38% year over year in the second quarter despite fears of slowing growth. The “Oracle of Omaha” has been ramping up his energy exposure this year with increased bets on Chevron and Occidental Petroleum . “We believe that higher interest rates, additional investment activity, and an acceleration in share-repurchase activity will provide additional support for earnings per share,” Shanahan said.
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