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Selling BRK/A below $151,650~ Or BRK/B below $101.10
He gave his opinion most major companies will be setting new profit records 5, 10 and 20 years from now.
He cautioned I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now.
http://www.nytimes.com/2008/10/17/opinion/17buffett.html?_r=1&pagewanted=print
The second was The Greenback Effect in August 2009,
after the market had recovered some +55% from March 2009 lows.
Mr Buffett affirmed The United States remains by far the most prosperous country on earth, and its debt-carrying capacity will grow in the future just as it has in the past.
He wrote We don’t want our country to evolve into the banana-republic economy described by Keynes.
He concluded Unchecked greenback emissions will certainly cause the purchasing power of currency to melt.
The dollar’s destiny lies with Congress.
http://www.nytimes.com/2009/08/19/opinion/19buffett.html?pagewanted=print
We saw what happened to Carbon Cap Trading, COP15 global warming and Healthcare. Nothing so far.
Even with the Congressional Wakeup Call of a Senate Seat held since 1952 by Democrat Teddy Kennedy retrieved by Republican Scott Brown, it is unlikely Congress can waive any magic wand to make over $12 Trillion of Treasury Debt disappear overnight.
Thus, the vast majority of market participants expected significant inflation sooner or later. They also expected stocks to keep up with inflation, something they did not do in the Seventies or Thirties.
We employ a corollary of Mr Buffett’s fear and greed investment theorem:
January 22nd, 2010 at 12:05 am
[...] Jubilee Prosperity » Blog Archive » Selling BRK/A below $151650 …Selling BRK/A below $151650~ Or BRK/B below $101.10. We have a lot of respect for Warren Buffett, perhaps the most successful investor of all time, exemplified by his Berkshire Hathaway Holding Company. And today the bullish rumour is … Read more [...]
January 26th, 2010 at 1:26 pm
Aloha All
We learned at least one person was unclear why we headlined
selling BRK/A below 151,650 or BRK/B below 101.10 when recent
prices were 109,995 and 73.43 respectively.
The long-term trend is our friend.
We like to buy on weakness in a primary uptrend or sell on strength in a primary downtrend.
With all the excitement about the 30:1 and 50:1 net 1500:1 splits, the 50:1 motivated by taxes from the BRK acquisition of BNI and the BRK KFT acquisition of Cadbury, we wish to remind folks Mr Buffett seems to be going against core declared principles promoting free markets while supporting government bailouts and guarantees that riddle them with moral hazard, calling for higher taxes while seeking to buy tax credits, eschewing stock splits while completing a 1500:1 stock split, and declaring derivatives weapons of mass financial destruction while selling naked puts that reduced the credit rating and earnings of BRK.
We think the clear long-term trend of BRK may be down, so caveat emptor…
Regards*Rich