Be kinde to folk. This changeth the whole habitat.
- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
No. of Recommendations: 1
What should be the maximum percentage of your portfolio invested in Berkshire?
No. of Recommendations: 11
It's like asking how many people are on the board : )
I usually tell people 50%, though I've gone much higher myself.
The "fancy" answer is that for me it depends on the valuation level. In a tax sheltered account I'd go to 100% with the price at book, and 0% with the price at twice book.
Jim
No. of Recommendations: 0
For me? Roughly 45%ish these days but I would certainly be comfortable with more ... perhaps 80% (where it was once).
For the uninformed that may call me when disappointed... haha... forget it!
No. of Recommendations: 8
In a tax sheltered account I'd go to 100% with the price at book, and 0% with the price at twice book.So, at current book $337.15 and share price $498.66:
100% BRK.B at $337.15 (P/B 1.00) and 0% cash.
75% BRK.B at $421.44 (P/B 1.25) and 25% cash.
50% BRK.B at $505.73 (P/B 1.50) and 50% cash.
25% BRK.B at $590.01 (P/B 1.75) and 75% cash.
0% BRK.B at $674.30 (P/B 2.00) and 100% cash.
Seems like a nice little fund. How much AUM can I get for this at 2 and 20?
No. of Recommendations: 1
I'm currently at 25%. It's my largest single holding by far. That's mostly because I just hold the damn stock and it just keeps growing, while the rest of my portfolio gets redeployed and rebalanced from time to time depending on circumstances. Occasionally, I buy more BRK when the price is irresistible, but that has only happened a few times. I have never sold a share, and my metric of financial success is that I will never be forced to do so. I like diversification, but there is no such thing as too much BRK.
I have no idea what I would do if it went over 2x book...
abromber
No. of Recommendations: 6
Seems like a nice little fund. How much AUM can I get for this at 2 and 20?
Hmm, we'll need higher returns to really suck in the money...
At P/B below 1.35, let's go over 100% allocation by moving some money into call options.
I added a bunch around 2011 (average P/B for the year 1.212) and 2012 (average P/B 1.192). Then I made more money from BRK in 2013 (ending P/B 1.4) and 2014 (ending P/B 1.56) than I did during all of 2001-2012 combined.
Jim
No. of Recommendations: 1
Seems like a nice little fund. How much AUM can I get for this at 2 and 20?No AUM at 2 and 20, but you could start an ETF. There already are a few Berkshire etfs, like BRKW and BRKU. BRKW has a 0.99% expense ratio.
I've been going around thinking we had 50% in Berkshire. I just checked and was surprised to see we're only 40%. Riding the mo-mo gravy train on cap-weighted index funds and value-oriented etfs has handily beaten Berkshire, which has been quite the hound these last 18 months:
https://stockcharts.com/freecharts/perf.php?VTI,VX...
