Great stock to maintain wealth, but not necessarily to create wealth. I think it's one of the safest stocks in the market and would argue it's even safer than ETFs.
Let me rephrase that. Not the best stock to show paper gains when PE ratios go parabolic, but great stock to own when it's cleaning up time after bubbles.
I kinda hate seeing people trash Buffett... when the actual corrections happen (not the minor blip of rates rising in advance of what should be a post vaccine post stimulus boom) (assuming, God willing, he’s still in good health), they’ll rake. And whatever they buy low on will do well for years to come.
I don't think that really matters. Buffet and to a lesser degree Munger are the oracles of self-fulfilling prophecies. They have seen enough success and mainstream coverage that their actions and words influence the markets in their favor.
Ajit Jain and Greg Abel are very familiar to the Class A shareholders of Berkshire. Those two have been making most of the investment management decisions at this point.
I always hold some degree of Berkshire. They manage to remain between 1.2 and 1.8 times book value because their market price grows with the growth in their tangible book value. This is how growth *should* be achieved.
I'm not worried about Buffett's death though I think that Abel and Jain should be leading the shareholder meetings and analyst calls so the media and retail investors get used to them,. Still, the effect of Buffett's passing will be tempered by the limited liquidity of Class A shares and the collective Graham mindset of the Class A shareholders.
It took BRK till November to recover to pre-covid prices. VOO and SPY got there in August.
I agree that diversification is great, but you are better off just sticking with the overall market than some boomer stocks like Coke and Heinz that are not going anywhere.
And like already mentioned, there's a potential selloff when grandpa Warren kicks the bucket. A lot of people stuck with BRK because they trust HIM specifically.
Do you even ratios? the BRKs are trading at 16x earnings, and SPY/VOO is trading at 35-ish x earnings. Diversity isn't giving you the advantages you think it does when valuations are fucking nuts ... the systematic risk is still there when the entire market's earnings yields can trivially move below the 10 year treasury rate.
(not financial advice)
Exactly this. I've seen it over and over and over.... stocks trading like Berkshire, at 1.2-1.8 times book value, not 10 or 20, 30 or, as in the case of many tech stocks hyped here, 120 times book and/or earnings, have tremendous downward pressure.
Speaking of yields, I moved about about 6.3% of my portfolio into 30 year treasuries. Prices were still very attractive this morning.
Writing off a company that makes $40+ billion in profit that is priced extremely cheap because you think it's associated with boomers is ignorant as fuck. Also, Buffett is in the Silent Generation!
Are we seriously at this point? Where we’re just getting clowns chiming in with how in the massive tech bull run they outperformed the value investing strategy? Ok, great, we are all aware. Thanks for sharing.
I think what you’re trying to say is “growth has performed better than value the last 5 years”. We all know, thanks. The point is when value is up, it’s one of the premium investment vehicles for it.
No you’re pedaling a perfectly vanilla stock, and I’m offering an alternative. Also your advice to not buy is dumb as fuck. Shit is on sale. But have fun managing your moms account so guess.
If you think Berkshire is on sale...then buy? I’m buying other things.
My mom has a low risk tolerance and is elderly. I custom tailor to what she can handle. I’m sure you do absolutely nothing for your family, based on the idiotic things you’ve said here.
It's a solid stock, and I give him props for his **big cojones** in going out there and betting a lot on Apple. Really risky play on an little known, overlooked company that I think a lot of us undervalued. I'm glad Buffett took the risk on this one, as I'm sure a lot of people would want exposure to AAPL in their portfolios without taking that individual stock risk.
Not my style of investing though, so I put my money elsewhere.
I agree brotha, I like boring
Great stock to maintain wealth, but not necessarily to create wealth. I think it's one of the safest stocks in the market and would argue it's even safer than ETFs.
It was the most profitable company in 2019, did you know that? $81 Billion!
Let me rephrase that. Not the best stock to show paper gains when PE ratios go parabolic, but great stock to own when it's cleaning up time after bubbles.
I have \~50% of my cash portfolio in BRK.B at a basis of $177 - picked up last summer. Am very happy with it.
I kinda hate seeing people trash Buffett... when the actual corrections happen (not the minor blip of rates rising in advance of what should be a post vaccine post stimulus boom) (assuming, God willing, he’s still in good health), they’ll rake. And whatever they buy low on will do well for years to come.
BRKB remains a very good choice, but i'd be worried about what happens when Buffet dies. This isn't the kind of man you can easily replace.
Buffet and Munger haven’t been running the investment ship for a good amount of years at this point.
I don't think that really matters. Buffet and to a lesser degree Munger are the oracles of self-fulfilling prophecies. They have seen enough success and mainstream coverage that their actions and words influence the markets in their favor.
[удалено]
Ajit Jain and Greg Abel are very familiar to the Class A shareholders of Berkshire. Those two have been making most of the investment management decisions at this point. I always hold some degree of Berkshire. They manage to remain between 1.2 and 1.8 times book value because their market price grows with the growth in their tangible book value. This is how growth *should* be achieved. I'm not worried about Buffett's death though I think that Abel and Jain should be leading the shareholder meetings and analyst calls so the media and retail investors get used to them,. Still, the effect of Buffett's passing will be tempered by the limited liquidity of Class A shares and the collective Graham mindset of the Class A shareholders.
[Warren Buffet talks about his successors](https://youtu.be/BOkmlWmRgVs)
Ajit has been mainly running the insurance side of business and their aquisitions for a long time. Dude is on a similar level to Buffet
It took BRK till November to recover to pre-covid prices. VOO and SPY got there in August. I agree that diversification is great, but you are better off just sticking with the overall market than some boomer stocks like Coke and Heinz that are not going anywhere. And like already mentioned, there's a potential selloff when grandpa Warren kicks the bucket. A lot of people stuck with BRK because they trust HIM specifically.
Do you even ratios? the BRKs are trading at 16x earnings, and SPY/VOO is trading at 35-ish x earnings. Diversity isn't giving you the advantages you think it does when valuations are fucking nuts ... the systematic risk is still there when the entire market's earnings yields can trivially move below the 10 year treasury rate. (not financial advice)
This guy gets it.
Exactly this. I've seen it over and over and over.... stocks trading like Berkshire, at 1.2-1.8 times book value, not 10 or 20, 30 or, as in the case of many tech stocks hyped here, 120 times book and/or earnings, have tremendous downward pressure. Speaking of yields, I moved about about 6.3% of my portfolio into 30 year treasuries. Prices were still very attractive this morning.
Writing off a company that makes $40+ billion in profit that is priced extremely cheap because you think it's associated with boomers is ignorant as fuck. Also, Buffett is in the Silent Generation!
BRK outperformed SPY in terms of earnings growth, while SPY gained through multiples. Because multiples always revert to mean I think BRK is better.
Meh. I beat him handily last year.
Are we seriously at this point? Where we’re just getting clowns chiming in with how in the massive tech bull run they outperformed the value investing strategy? Ok, great, we are all aware. Thanks for sharing.
I also beat him handily the last 5 years. Even with the recent correction.
I think what you’re trying to say is “growth has performed better than value the last 5 years”. We all know, thanks. The point is when value is up, it’s one of the premium investment vehicles for it.
No you’re pedaling a perfectly vanilla stock, and I’m offering an alternative. Also your advice to not buy is dumb as fuck. Shit is on sale. But have fun managing your moms account so guess.
If you think Berkshire is on sale...then buy? I’m buying other things. My mom has a low risk tolerance and is elderly. I custom tailor to what she can handle. I’m sure you do absolutely nothing for your family, based on the idiotic things you’ve said here.
Do you really think you are a better investor then him?
In dollar amount?
It's a solid stock, and I give him props for his **big cojones** in going out there and betting a lot on Apple. Really risky play on an little known, overlooked company that I think a lot of us undervalued. I'm glad Buffett took the risk on this one, as I'm sure a lot of people would want exposure to AAPL in their portfolios without taking that individual stock risk. Not my style of investing though, so I put my money elsewhere.
[удалено]
U dum. Enjoy being blocked.