What does Buffet have left?
COMPLETE ARTICLE AND GRAPH
I have been a fan of Warren Buffet and his Berkshire Hathaway stock (BRK.B) almost since the day I started getting interested in investing. Through thick and thin Warren has continued to make money by buying established companies that have executed a solid business plan in the past and are expected to continue profitable operations in the future. He tries to buy them at a discount and hopes to hold them forever. He has made a lot of money for others and a killing for himself. I wouldn't bet against him but I think you can do better on your own but only of you are willing to work a disciplined plan. During the last 3 1/2 year period the general market as measured by the Value Line Index has beaten him soundly as this Barchart graph shows:
Barchart technical indicators:
1 - 80% Barchart short term technical sell signal
2 - Trend Spotter technical sell signal
3 - Below its 20, 50 and 100 day moving averages
4 - Lost 19.99% off its 1 year high vs. the Value Line Index loss of 17.56%
5 - Relative Strength Index is 46.99 and climbing slightly
6 - Barchart computes a technical support level at 69.06
7 - Recently traded around 70.16 which is below its 50 day moving average of 73.22Recent price movement in the last 28 trading sessions:
Summary: Berkshire Hathaway class B shares (BRK.B) are suited for long term investors who want to use a value investing approach for the long haul and realize that they are paying a premium to let Mr Buffet invest for them. Since today's price is at least 20% cheaper than it has been in the past year now is a good entry point. Investors that want to stay personally involved and continue a hands on approach should pass on these shares.
Jim Van Meerten is a Marketocracy Master