Scharf Investments, LLC

The talk this week was around Nvidia’s earnings call on Wednesday. The company reported another solid quarter of earnings, revenue beat estimates, and guidance is in line with expectations. Within the semiconductor group, Nvidia is a juggernaut versus the competition. “It looks like Nvidia is in great shape and everyone else is sucking wind,” said Eric Lynch, managing director at Scharf Investments during an appearance on November 18, 2024 on Schwab Network’s “Morning Trade Live” program with Oliver Renick. When it comes to the chip trade, Nvidia is doing well, but other chip makers are struggling. “AI is a giant sucking sound taking from all the other IT spend.” Unless your wagon is hitched to the growth from AI, as Nvidia’s is, it’s hard to compete. Thanks Oliver Renick and Schwab Network for a great conversation. https://lnkd.in/ghu7iUKN Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #earnings #nvidia #semiconductors #ai

In a Wall Street Journal article published on November 14, 2024, which highlighted recent investment activity by Warren Buffett and Berkshire Hathaway, Jerry Beyke, CFA offered his perspective on why Buffett and Berkshire have amassed a record cash pile of $325 billion. “It’s hard to find bargains,” said Jerry Beyke, a longtime Berkshire shareholder and senior investment analyst at Scharf Investments. “Buffett, before he puts money to work in a new idea, he wants a bargain.” See the full article here: https://lnkd.in/grckAne7 (subscription may be required) Past performance does not guarantee future returns. Investing involves risk of loss. #warrenbuffett #investing #value #stocks

While there has been a lot of investor optimism this year, 2025 could be full of uncertainty. “Investors would be wise to curb their enthusiasm,” said Brian Krawez, CFA, president and lead portfolio manager at Scharf Investments during an appearance on Reuters TV on November 14, 2024. Brian highlights three things that investors should be aware of as we look to the new year, including heightened risk of recession, geopolitical tensions, and policy changes that the incoming Trump administration will want to enact. Also worrisome is debt, which could have an impact on the economy over the next 5-6 years. Thanks Reuters TV for a great conversation. https://lnkd.in/gJy9reVw Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #geopoliticalrisk #uselections #recession #debt

While the uncertainty around the U.S. elections have caused anxiety for investors, you aren’t really seeing that in the favorable economic data released last week. “Investors seem to be taking their cue from incredibly strong macro numbers,” said Eric Lynch, managing director at Scharf Investments, during an appearance on October 30, 2024 on CNBC. “The consumer is really driving this.” Thanks Tanvir Gill and CNBC for a great conversation. https://lnkd.in/gGJU7XTh Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #stockmarket #uselection

In a Barron’s article highlighting election uncertainty and its impact on the market, Brian Krawez, CFA offered his perspective. “I wouldn’t hide in the bunker because you’re worried that Trump’s going to win or Harris is going to win,” Brian Krawez, president of Scharf Investments, said. “The reality is the sun is likely to come up tomorrow and stocks over the long term will be a good place to be.” See the full article here: https://lnkd.in/g-HPQEdp (subscription required) Past performance does not guarantee future returns. Investing involves risk of loss. #USelection #stockmarket #vote

For some time now, the story has been mega-cap tech and the Mag 7, but that started to change in Q2 when you saw earnings broadening to other sectors outside of tech. Say hello to the Wonderful 111! “There are actually 111 stocks within the S&P 500 that are expected to grow earnings for Q3 above 15% and only four are Mag 7 companies,” said Eric Lynch, managing director at Scharf Investments during an appearance on October 29, 2024 on Reuters TV. We believe these non-Mag 7 companies are much more compelling from a risk/reward standpoint as their 2025 estimated valuations are half that of Mag 7 companies (15x vs 30x). Thanks Reuters TV for a great conversation. https://lnkd.in/gmEiCyan Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #earnings #wonderful111

Tesla’s “We, Robot” event will be held this evening. After several years of discussion, the company is expected to unveil its efforts around a robotaxi and plans to enter the autonomous driving business. “It’s a huge deal and they really need to pull something out of the hat,” said Eric Lynch, managing director at Scharf Investments during an appearance yesterday on Schwab Network’s “Morning Trade Live” program with Oliver Renick. Unlike their position as a first mover when they transformed the automotive industry, they are behind companies such as Waymo and Baidu who have been in the autonomous driving business for the past 10 years. “It’s not like they are in a pole position this time,” said Lynch. What will Tesla do to differentiate themselves and transform this space? We’ll see tonight. Thanks Oliver Renick and Schwab Network for a great conversation. https://lnkd.in/dXYnPQr3 Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #usstocks #tesla #baidu #waymo #robotaxi #autonomousvehicle

All of us at Scharf Investments support our clients, their families and friends throughout the Southeast impacted by Hurricane Helene. We have made donations to World Central Kitchen and The Humane Society of the United States to aid in the ongoing relief efforts and bring hope to those in the midst of this historic disaster. ? As our friends in Florida brace for the impact of Hurricane Milton, please know that Scharf Investments is here to support you and assist you in planning for life’s unexpected events.

With third quarter earnings season underway, what can investors expect? “I actually think we’re going to have a stronger than expected earnings season,” said Eric Lynch, managing director at Scharf Investments during a recent appearance on Reuters TV. We had strong earnings growth in Q2 and it was broad-based among companies beyond the Mag 7. “More companies have outperformed the S&P 500 in recent months than they have in 30 years,” said Lynch. Thanks Peter Devlin and Reuters TV for a great conversation. https://lnkd.in/gq_-2r8x Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #earnings

During this holy week of Rosh Hashanah and Yom Kippur, we pause to remember all those who lost their lives one year ago on October 7th. We also remember all those who have suffered over the past year. We hope for a return of all hostages and for peace in the Middle East.