A holding company owning subsidiaries engaged in a number of diverse business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, retailing and services.
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In sports betting, when a team gets 'hot' or suddenly becomes 'popular,' what used to be a good team to bet on now becomes a bad one since everyone else is betting on it. The bookies price into the line that everyone now loves the team, and the line gets affected signficiantly.
I feel that a similar story is occuring with Berkshire. People's man crush on Buffet has catapulted the price of the stock, especially last year. The company and its stock price is getting too big for its own good.
Starting to agree with this. The stock's traded sideways for the last half-year or so... even with its characteristic 'stairstep' pattern, I'd say it's overvalued. MKL has a much nicer P-E ratio and is in the same type of core business (and has the same philosophy).
Too bad this isn't sports, and I'm sure the same thing was said in 1996 when BRK was $1,000 and the year 2000 when it was $1,400, and 2004 when it was $3,000, and now it sits at around 4,000. Not saying it will continue to rise, but sometimes the price increases are less funadmental and more spurred by speculation. If everyone thinks it will go higher, they will buy it leading it to go higher.
at $4,000 a share not many who like this "team" can afford to buy a significant amount. fundamentals dictate a rise in price. Even if Gieco drags earnings down they are still stronger than the general market.
Berkshire has been making over 22% yearly returns for 30 years. Not what I'd call "suddenly" popular. In fact, posts like this tell me that conventional wisdom has turned and it's time to buy again.
Dan's got a clever idea with MKL. Unlike sports betting, the good team at BRK won't pay out at 12:1 when they lose so the 4 years they go up will stll be worth well more than the one year they go down. Getting them when their price is at a lull (like now) is one of the safest investments imaginable.
Investing is not the same as gambling. Decisions should be made on a company's stock price vs. intrinsic value.
My thinking is that Berkshire faces the same challenges as every other big company..... namely, a lousy economy for the foreseeable future. Yes, they are a legendary company but I'm not looking for legend, I'm looking for a solid investment. Nor do I believe that because a stock drops 20% it is necessarily cheap. I'll be checking further into this as a possible investment but I'm not ready to dive in head first at this point. I think caution is warranted.
Sports betting? Bookies???Not very foolish thinking. I know what you mean though.But I am not buying the option on the stock, this is an anchor in any portfolio. I think if an investor has a time horizon of 3-5 years (now known as long term) this would be a great buy.I am picking up some at these prices.The stock portfolio is only a portion of the Brk holding. The companies that are held by berkshire, Geico, Dairy queen, Fruit of the loom, pampered chef , Sees candy, are terrific money makers. Think like a businessman and buy some now.
I first bought Berkshire B at 1900, more at 2400 and then more at 3700. I am out of cash or I'd buy more at 3100 right now. I missed an opportunity to buy an A share at 34,000 some years back. I don't see this as like sports betting at all. Lots of people are selling now because they are panicked. I am doing the best I can to profit from their decision. I'd buy any shares Lance 912 has if I had the cash to do so.
I think this is kind of, at least partially, why he set up the B shares, because the A shares were such a phenomenon.
"Berkshire faces the same challenges as every other big company..... namely, a lousy economy for the foreseeable future..."True, but the big difference is Berkshire's investment arm. Buffet buys shares in those other big companies (well, some of them) at bargain prices, thus allowing him to profit in the longer term from their short term losses. I can't help thinking that the investment deals Buffet has been striking recently are going to pay off handsomely over time, even if BRK's insurance arm and other businesses struggle along with the broader economy.
Buffett would laugh at this and so do I. Ha Ha Ha !
downward momentum !
for more information, refer to my blog
A 50 to 1 split did wanders for the original argument. This is not a short term (4 weeks?)hold. The catch is, when will it fall and how far.
This stock will not tank... It will fluctuate like EVERY other stock ever... But, it will not tank. If you want huge gains quickly, then go squander your savings on the pink sheets.