Ulta Beauty Shares Are Trading Higher After Warren Buffett’s Berkshire Hathaway Added A Stake In The Company: What Investors Need To Know

Benzinga

Berkshire Hathaway Q2 2024 13F Adds New Positions In Ulta Beauty With 690,106 Shares. Benzinga's Premarket Prep team see if it's worth chasing up at these levels.

Transcript

00:00Well, let's talk about an investor that bought a stake who's definitely not an activist investor,

00:06probably not going to come in and try to make any big changes, but Warren got into Ulta

00:11Beauty.

00:12So Dennis, we were just talking about Ulta versus Elf the other day, and I was like,

00:15I want to buy the dip on Elf.

00:16And you were like, why not Ulta?

00:18Ulta's the leader.

00:21Elf is the dog.

00:22If you want to buy one of them, buy the best of breed.

00:24And maybe Warren was listening because he was like, yeah, you know what?

00:27Aaron is right.

00:28He listens to the show.

00:29Warren was like, AB is right, that kid makes some good points.

00:31And he's like, Dennis is also right that if I'm going to buy the dip on the space, I got

00:35to go with Ulta and not Elf.

00:37And that's exactly what Warren did.

00:39He bought a big stake in Ulta Beauty.

00:42Let's see.

00:43I had the numbers up exactly.

00:45It's a big, it's a, it's a big, it's an initial stake for him.

00:48They're all big when you're Warren Buffett, but it's basically a small position for him,

00:52but big for anyone else in the world.

00:54He'll find that number.

00:55I mean, when you've got stock that's completely in the gutter like Ulta and it gets Warren

01:01Buffett giving it the vote of confidence, there is absolutely no doubt it's going to

01:05get a significant pop.

01:07So information arbitrage, which is what I try to do to a certain extent, not HFT is

01:12monopolized, you know, the initial print, but then afterwards you can say there's going

01:16to be follow through here.

01:17One, at this point in time, they hadn't even mentioned it on CNBC yet.

01:21So you know, it's going to get the CNBC pop.

01:23CNBC is five minutes after everybody else.

01:26So, and you know, it's going to get the CNBC pop after, so they hadn't even mentioned that

01:30yet.

01:31So that's obviously mentioned.

01:32Everybody in the whole world knows it now.

01:34So I mean, now there's, you know, no like, Oh yeah, well, so nobody else realizes.

01:39No, everybody knows it.

01:40A minute after the print, 99% of the population doesn't realize it, you know, like yet.

01:46So unless you're actively trading.

01:47So I mean, it's all about information, you know, it's out there, but not everybody knows

01:53yet.

01:54Like it's out public, but it's not.

01:55So there's a window there sometime to try to get in and get ahead of the masses.

02:01Even though the HFT is already in, because it's obviously been disclosed in the 13 app.

02:06There's still that window where the masses don't know yet.

02:09And when the mass is coming in, the retail masses and everything else is going to get

02:11another pop, obviously went over 380.

02:13It's come all the way back down here now.

02:15So yeah, that ship has sailed.

02:17This opportunity is gone.

02:18380, 320.

02:19I don't think you see that today.

02:20Money.

02:21I don't think you see that today.

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