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Stock Alert: RH Stock Sets New All-time High

Shares of Upscale furniture chain RH (RH) are on a tear, on the heels of an upbeat annual forecast. Today, the stock set a new all-time high of $239.88.The stock is up more than 20% from its Dec 3 opening price of $196.66, and currently trading at $237.8, and nearly three-times its 52-week low of $84.11.

A Nov 15 regulatory filing that said Warren Buffett's Berkshire Hathaway had bought $206 million shares of RH in the third quarter is also helping the stock, a lot actually.

While most retailers invest in growing their digital business, RH says it continues to believe in creating a physical store experience that cannot be replicated online. The company cites a vertically integrated real estate development model with low capital requirements and occupancy costs, plus the discipline of driving high-quality profitable growth, as reasons for its expanding operating margins, and significant free cash flow generation.

In its recent earnings conference call, the company did not show much anxiety regarding the trade deal with China. Calling China a great partner, the company said it expects a trade deal to be worked out, and even if that did not happen, there were other options.

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