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Short Warren Buffet: Berkshire Hathaway Inc. Is Headed Lower

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May 14, 2014 – Comments (5)

Warren Buffet is hailed by the investing public as one of the greatest investors that ever lived. While this may be true, stock in Berkshire Hathaway Inc. (NYSE:BRK.B) is heading lower and soon. Let's look at the many reasons to short Berkshire Hathaway Inc.

 

1. Warren Buffet is getting old. There, it has been said. Investors should realize this and understand that upon his passing, the stock will probably take a 10% hit (minimum). If you are short the name, you will take this as profit. While it will be a sad day when Berkshire Hathaway Inc mogul Warren Buffet dies, why make it a worse day by being long or on the sidelines? Short it and profit. 

 

2. Warren Buffet and Berkshire Hathaway Inc. have underperformed the market for quite some time. The companies that make up Berkshire Hathaway Inc. (NYSE:BRK.B) are all old school, low growth plays. He has not upgraded his portfolio. As times change, new technologies drive the future. This should be a big concern to all investors. Berkshire Hathaway Inc. needs to get with the times and start thinking what companies will be the next Coca Cola. Eventually, current names may become obsolete.

 

3. The current chart of Berkshire Hathaway Inc. is unbelievably bearish. There is a classic bear flag pattern that spells downside. Please note the chart below for Berkshire Hathaway Inc. Be aware that if this chart plays out, the stock will head to a level of $118.25 within a month.

 

Berkshire Hathaway Inc is a great company. But great companies sometimes pull back. The signs are all over the place, this company's best days are behind it. Berkshire Hathaway Inc. is a flat out short.

 

 

Gareth Soloway

InTheMoneyStocks.com

 

 

5 Comments – Post Your Own

#1) On May 14, 2014 at 1:20 PM, Mega (99.97) wrote:

Oh yeah? Put your money where your mouth is.

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#2) On May 14, 2014 at 2:48 PM, awallejr (77.67) wrote:

Wow you are telling people to short BRK because Buffett is going to die?

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#3) On May 14, 2014 at 4:17 PM, ElCid16 (97.08) wrote:

2. Warren Buffet and Berkshire Hathaway Inc. have underperformed the market for quite some time. The companies that make up Berkshire Hathaway Inc. (NYSE:BRK.B) are all old school, low growth plays. He has not upgraded his portfolio. As times change, new technologies drive the future. This should be a big concern to all investors. Berkshire Hathaway Inc. needs to get with the times and start thinking what companies will be the next Coca Cola. Eventually, current names may become obsolete.

I'm nearly certain that this same paragraph was written about BRK/Buffett, dozens of times over, from 1997-2000. 

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#4) On May 14, 2014 at 5:23 PM, Valyooo (99.47) wrote:

I also just looked at the chart, and it's very bullish

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#5) On May 15, 2014 at 9:48 PM, tomlongrpv (78.26) wrote:

Berkshire Hathaway is getting too big to grow the way it used to grow but it has some long term advantages and is good for high income individuals to hold long term because it provides growth without dividends that force you to pay taxes.  You decide when you want to pay taxes--when you sell--and it is all capital gain and deferred.  In my case I will sell my shares when I retire since they won't yield the income I am looking for.  But in the meantime they are fairly steady growth.

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