Added to Berkshire Hathaway Holding
As we all know Buffett and Munger think Berkshire is undervalued even at 1.1ish times book value. As anyone following me knows, I have owned it for awhile, and bought last summer/fall in the low 70s and even some in the high 60s, which was awesome. I rarely add to a position before earnings, and this is no exception. But after hearing Buffett's latest, I'm willing to add more, especially since his guys Coombs and Wechsler have been following me so assiduously on my picks like Intel. Yeah, I'm kidding. But anyway, I think this thing is worth well north of $100 share, and I'm comfortable adding here. I added 13 shares today in my IRA, at $82.10, with a $6.95 commission.
Notes on some other stocks I already own:
MCD -- I think it's undervalued by over 20%, but I'm running an experiment and seeing if the technical guys are right, since the technicals are very, very bad here.
KO -- Currently overvalued folks, it's great, but look for a significaly (20% or more) better buy point. I bought at $45 and $63, holding for LT gains and dividends.
PG -- Currently fairly or overvalued. I wouldn't add more above $55 unless we get some better news on the cost-cutting. I'm not holding to outperform in CAPS, I'm holding as an anchor, for the dividend and the low-beta if the market turns south.
MSFT -- Currently still way undervalued, but already my largest position.
INTC -- Currently still way undervalued, but I am worried about cyclicality.
AAPL -- Currently still way undervalued, but I recently added at $570. If it hits $550 I'll start to look seriously again, and will definitely add more if it gets much below $550.
XOM -- Likely undervalued (I estimate $100), a buy below $80, back up the truck for a long-term stellar dividend hold if it gets below $70.
SODA -- Shorts are absolutely convinced it's a fad, and either they are right or they are keeping it perpetually undervalued. My major worry is inventory issues, which preceded the fall at GMCR.
ISRG -- Too far too fast, I started looking for a pullback at $580 and have gotten it somwhat. I may add if it gets below $520.