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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: mungofitch ✹✺ SILVER
SHREWD   😊 😞
Number: of 22354 
Subject: Re: BACk to selling BAC
Date: 08/20/24 12:08 PM
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No. of Recommendations: 18
"GarrettMcAuley: "The Bank of America’s unrealized bond portfolio losses now exceed $100 billion. That’s about the equivalent (on a pretax basis) of half of the company’s tangible common equity. Wow."

I find it interesting that it wasn't JUST locking in low returns for a long time. Remember that in times of distress, there is no such thing as a "held to maturity" asset--everything gets sold that can be sold. If any little financial crisis were to show up, those would not be paper losses. This view of things may be one reason Mr Buffett is getting his hat and heading for the door. A crisis is unlikely (isn't it always?) but it's not worth taking a risk that size.

Jim
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This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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