Some off topic posts are okay, but please prefix them 'OT:' in the subject.
- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 18
Just a reminder that in markets, anything can happen, including to the upside.
If a fake, made up currency, backed by absolutely nothing can trade for $60,000, surely it's POSSIBLE that BRK could make a move that may be seen by many as a mere 10, 20 or 30% too high.
Two random thoughts:
1) In recent months we have seen massive percentage moves by companies with larger market caps than BRK, namely MSFT, Nividia, Apple and others.So size does NOT appear to be a limiting factor these days.
2) Perhaps past valuation bands need to be revisited given WEB's historically aggressive buy back of shares in the past 24 months or more?
I'm not saying I don't believe in historical valuations, reversion to means, or that the odds favor a further move to the upside.
All I'm saying is that we have seen pure insanity when it comes to valuations in the market on a daily basis forever, so it may not be smart to get too cute if you don't need the money and you hold stock in an account where you will owe taxes as well.
Anything can happen. Maybe it's the time for us nervous nellies that prefer to invest conservatively over the long haul to have our moment in the sun.
No. of Recommendations: 3
"
Anything can happen. Maybe it's the time for us nervous nellies that prefer to invest conservatively over the long haul to have our moment in the sun."
the curse of value investors - enjoying the upside.
"Please God, one more bubble" - my favorite bumper sticker I saw in the Valley after the 2000 bust.
No. of Recommendations: 8
2) Perhaps past valuation bands need to be revisited given WEB's historically aggressive buy back of shares in the past 24 months or more?
I think there may be something to this. But I think it's more at the low end...perhaps the "spongy floor" we saw for a few years during the 1.2 times book" buyback rule?
But the current price movement doesn't seem to be very Berkshire specific...other than a blip around year end, Berkshire's price trajectory has tracked that of the average S&P 500 firm almost perfectly in the last 10.5 months. Party like it's 1999?
Jim
No. of Recommendations: 4
If a fake, made up currency, backed by absolutely nothing can trade for $60,000, surely it's POSSIBLE that BRK could make a move that may be seen by many as a mere 10, 20 or 30% too high.
“POSSIBLE” is an open ended, loaded word. Almost *anything* is “POSSIBLE.”
In this case, though, I’d say it’s unlikely in the extreme.
In recent months we have seen massive percentage moves by companies with larger market caps than BRK, namely MSFT, Nvidia, Apple, and others
Sure. Those are tech stock which can be volatile or flukey, and which can respond dramatically to a good story, i.e. “new tech development that will upend the world.” Somehow that seems unlikely with a conglomerate made up of centerpiece consumer products and services, from truck stops to manufactured houses, from candy to insurance, from Dairy Queen to pipelines.
What possible “story” would move a monolith like Berkshire? There are no hurricanes predicted for the foreseeable future? All railroads except ours stop operating? A law is passed requiring every citizen to have a double-fudge ice cream cone daily?
What?
No, we are the turtle. There are hares about, and some will win the race, but we are slow and steady, rock solid, a holder of vast wealth which is unlikely to find itself beset with the sorts of moves that others endure, both for good and bad. Thanks but no thanks Peleton. Zoom. Tesla. Lyft. Zillow. Etc.
No. of Recommendations: 0
I trimmed 10% at 495.91, just been some amazing moves higher last few trading days and want to reduce risk.
