By Doug Busch
Taking time to revisit former stock picks can be just as valuable as identifying new opportunities. Regardless of short term outcomes, reviewing past ideas helps reinforce discipline, refines processes, and highlights the importance of patience in investing. Markets evolve, but the lessons they teach often endure far longer than any single trade.
A familiar theme in our Wednesday editions has been steering clear of technology and other growth-oriented areas in favor of what is working. Technology is a cellar dweller this year, ranking 10th of 11 major S&P 500 sectors, ahead of only financials. In contrast, industrials and consumer staples both sit in the top four and account for two thirds of today's ideas. For investors seeking a more defensive posture, a certain Warren Buffett-led conglomerate may offer some added comfort.
This week we revisit:
-- Deere & Co., introduced by Al Root last July. -- Berkshire Hathaway, covered by Andrew Bary last July. -- Vita Coco, the topic of a Todd Chanko piece last November.
This is a weekly column. Read last week's edition here.
Deere & Co.
The industrial farm and construction equipment company, is already up 16% this year. The stock has gained about 8% since our recommendation. As impressive as that move is, its ratio chart versus Caterpillar has been underwhelming. It's worth remembering, however, that ratio charts simply compare two instruments and do not preclude both stocks from performing well on an absolute price basis. Deere is currently riding a four-week winning streak, and the stock has not posted a streak longer than that in nearly two years.
On the daily chart, a bullish golden cross was just recorded, defined by the 50-day simple moving average crossing above the 200-day simple moving average. The stock is also breaking out above a cup base pivot at $533.08, an especially constructive development given that this level acted as stubborn resistance on four separate occasions between May and August.
Adding to the bullish case, candlestick signals have been effective at identifying near term lows, including a bullish engulfing candle on April 9 and a piercing line on Oct. 14. From here, investors can consider entry at current levels and look for a move toward $633 by mid-2026, representing roughly 17% upside from current prices. The bullish thesis remains intact as long as the stock holds above $515.
Deere was trading around $559 Wednesday.
Berkshire Hathaway Class B
This well-recognized conglomerate has had a lukewarm start to 2026, dropping 2% so far versus a 1% for the S&P 500. The stock has gained 3% since our recommendation but has largely been left out of the broader market rally these past 12 months, gaining just 5% while the S&P 500 has added 14%. As the largest holding in the State Street Financial Select Sector SPDR ETF, its relative underperformance is evident on the ratio chart, where Berkshire has acted as a drag on the fund.
On the one year daily chart, the $450--$475 zone has repeatedly acted as support, holding on four separate occasions over the past year. The most recent tests occurred as the stock carved out double bottom patterns. A prior breakout attempt above the $505.07 pivot failed quickly after Nov. 14 recorded a bearish dark cloud cover candlestick. This time, a new potential pivot has formed at $505.99.
On the weekly chart, the stock is beginning to resemble a potential bullish morning star pattern. Ideally, a breakout above both the downward sloping 50 day and 200 day simple moving averages, currently clustered near $497, would offer a more compelling entry signal. Should that occur, a move toward $550 by mid 2026 appears achievable, representing approximately 11% upside from current levels. The bullish outlook remains intact as long as the stock holds above $482.
Berkshire Hathaway Class B was trading around $ Wednesday.
Vita Coco
The beverage company has delivered more than palatable returns since our recommendation, gaining 33% since Nov. 12. The S&P 500 has barely managed 1% since that date. Over the past three months, COCO is up 41%, and over the last year it has advanced 55%. Heading into today's trading, Vita Coco is showing impressive relative strength, up 8% for the week and decisively outperforming the State Street Consumer Staples Select Sector SPDR ETF, which has gained just 2.8%.
The one-year daily chart shows solid action, with the stock up more than 3% on a very soft tape Tuesday. That ability to shrug off weak market action is often a signal for higher prices ahead. The stock has demonstrated remarkable consistency, not posting a losing streak longer than three weeks since July 2023.
Yesterday it broke above a bull flag pivot at $56, which could project a measured move toward $72 by mid-2026, roughly 25% upside from current levels. The bull flag formed following a bullish inverse head and shoulders breakout in July, reinforcing the constructive technical backdrop. Maintain a bullish bias as long as the stock holds above $52.
Vita Coco was trading around $ Wednesday.
Doug Busch is the senior technical analyst at Barron's Investor Circle . His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
February 04, 2026 23:38 ET (04:38 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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