JP via RSS
Selling BRK/A below $151,650~ Or BRK/B below $101.10
This is not how companies grow business and revenues for the future.
Mr Buffett described derivatives as weapons of mass financial destruction but continued to use them in amounts that could wipe out his investment portfolio. Some Buffett companies lost market share and revenues.
Mr Buffett said he did not like Kraft issuing more shares to acquire Cadbury but continued to hold Kraft.
Mr Buffett said he is a contrary value investor but paid up for companies like COP and BNI, decried inflation but supported government bailouts, we scratch our heads.
Of course with his superior track record he may see further than we, standing on the giant shoulders of Benjamin Graham.
We freely admit we may be myopic.
Of course the future is made up of a series of current events.
Right now the economy is still declining, despite all the heroic efforts of the king’s men and women.
Because we face facts and generally see the glass as half full, we think BRK/B may sell at much lower prices than 101.10 or even 73.43 at some point in the future.
We use Trailing Buy and Sell Stops to enter and exit positions to preserve profits.
Past performance is no guarantee of future results, maybe better…
Regards*Rich
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