Berkshire Hathaway, Inc. (NYSE:BRK-B)

CAPS Rating: 5 out of 5

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.

Recs

21
Player Avatar 20Punches (53.93) Submitted: 12/26/2012 1:55:14 PM : Outperform Start Price: $89.24 BRK-B Score: +15.62

“When Warren lectures at business schools, he says, “I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it so you had twenty punches – representing all the investments that you get to make in a lifetime. And once you’ve punched through the card, you couldn’t make any more investments at all. Under those rules, you’d really think carefully about what you did, and you’d be forced to load up on what you’d really thought about. So you’d do much better.”" – Charlie Munger

In the spirit of this idea, I made 5 initial punches/picks, and will thereafter make a maximum of 1 pick per fiscal quarter until all 20 punches have been used. I expect to use up all punches over the next 5-7 years. I will compare the performance of this acct to my more "active" CAPs account, and see if this maxim proves correct.

Report this Post 11 Replies
Member Avatar MMCapitalMgmt (99.80) Submitted: 1/14/2013 1:50:00 PM
Recs: 0

LOL

Member Avatar MrOneHundred (30.15) Submitted: 1/23/2013 2:13:07 PM
Recs: 0

Curious idea; I'm interested to see what happens.

Member Avatar MrOneHundred (30.15) Submitted: 1/23/2013 2:23:46 PM
Recs: 1

In fact, I'm going to go ahead and pick exactly 20 stocks for the long haul (5 years) in my present account rather than just trying to time everything (which is when is use NS). These long term stocks will represent those 20 punches. Excellent idea!

I've already picked GOOG for this very reason and will have to decide which other ones I'd place in this category.

Member Avatar 20Punches (53.93) Submitted: 1/28/2013 7:39:16 PM
Recs: 0

@MMCapitalMgmt

What's so funny?

Member Avatar MMCapitalMgmt (99.80) Submitted: 3/22/2013 12:22:12 PM
Recs: 0

Hardly utilizing anything from your quote, if you are just going to have Warren select stocks for you.

Member Avatar jgutshall (< 20) Submitted: 3/23/2013 11:58:05 PM
Recs: 0

I think you miss the point. Warren doesn't do the picking you do.. You just limit your picks to 20 in your life time. You might work hard and really understand the companies whose stocks you buy if you limit yourself in this way.

Member Avatar jgutshall (< 20) Submitted: 3/23/2013 11:58:08 PM
Recs: 0

I think you miss the point. Warren doesn't do the picking you do.. You just limit your picks to 20 in your life time. You might work hard and really understand the companies whose stocks you buy if you limit yourself in this way.

Member Avatar 20Punches (53.93) Submitted: 3/31/2013 11:06:09 AM
Recs: 0

@mmcapitalmgnt

Your reply has me a tad confused. Buffett dosen't pick for me, I pick for me. Sometimes those picks overlap, and sometimes they don't. I'm quite confident that this CAPs account will have a very high average pick score 3 years from now, much higher than yours in fact.

Best of luck to you.

Member Avatar MrOneHundred (30.15) Submitted: 4/4/2013 6:31:10 PM
Recs: 0

I agree. This is an exercise in developing accuracy which IMO is way more important than CAPS points. I'd gladly take a smaller gain with the benefit of having a larger accuracy with real money too. Although having an elephant gun handy is nice just in case one finds a 100-bagger. Research, research, research.

Member Avatar MaryStern (53.99) Submitted: 4/29/2013 8:31:14 PM
Recs: 0

I like BOFI

Member Avatar jsn1080 (47.86) Submitted: 8/15/2013 1:12:27 PM
Recs: 0

I believe @mmcapitalmgnt is referring your selection of BRK-B as one of your 20 punches when he states that you are going to have Warren Buffett pick for you. Since BRK-K holds dozens of individual equity securities at any given time, you are really investing in 20 companies plus benefiting from all of Warren's picks via BRK-B.

It's like Barry Bonds bragging about his all-time HR record and then someone replying and qualifying the record by stating that Barry Bonds broke the record with a little bit of "help" (i.e. steroids). Can you pick 20 companies without using BRK-B as your steroids?

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