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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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FloodFinancial (98.60) Submitted: 5/14/07 2:48 PM : Start Price: $3639.00 BRK-B Score: -22.52
Berkshire has the potential to plummet during the transition of managers. Even if this doesn't happen, whats the upside? a 2-3 point outdual of the S&P, you can't even lock-in that as accuracy points in CAPS. The current score leaders are going short, I'm going w/ them.
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Persuter (99.39) Submitted: 1/29/08 11:06 AM
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I don't see why it would plummet during any transition. Berkshire does not trade at a high premium to its underlying values, despite Buffett's success -- 15 P/E, 1.7 price to book and 1.8 price to sales. It's not like when Buffett dies, GEICO will suddenly implode. (Unless he dies in a car accident. :P) Berkshire has almost the same yearly revenue as their book value -- this is not a company that's going anywhere for a while.
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Cetamura (< 20) Submitted: 5/15/08 9:15 AM
Flood, I agree. Everybody is in love with Buffet and his shareholders rightly so. But presenting him as an investor is misguiding. He is an industrialist, an empire builder, a captain of industry...you choose the name.But he is not an investor like you and me. He buys companies ( or at least significant shares of them).He built an empire but like with all empires when the founder goes chances are that the empire sinks under its own weight...
YoungInvestor99 (21.95) Submitted: 5/17/08 10:52 AM
I think Berkshire is built to last. Buffett is not the kind of guy to just leave his lifes work to any idiot who does not know how to manage it.
matstao (99.69) Submitted: 6/03/08 10:18 PM
Also, Buffet isn't the kind of guy to make investments/buy companies that he needs to keep his eyes on constantly. I think his investments will continue to do just fine for years after he can actively manage them.After his (hopefully far-off) death, the stock will probably drop, gaining the near-term red-thumbers some CAPS points. Then (hopefully) the new managers will say "We're going to take things slowly and do as little as possible with our existing portfolio." That's when I'll buy a real-life share or two.