Halls of Shrewd'm / US Policy❤
No. of Recommendations: 1
Will Berkshire stock go up or down when Buffett steps down as CEO? I think the stock will go down, and should go down. Berkshire is not as good a company, or as valuable a company, without Buffett as CEO.
No. of Recommendations: 0
down. even tho he said it would go up.
No. of Recommendations: 4
Buffett hasn't been running the show in years(Greg has) . The stock and company are cash machines. The Buffett premium is already gone and has been for years.
No. of Recommendations: 4
" The Buffett premium is already gone and has been for years."
Fully agree but price action can be a wide band around IV.
No. of Recommendations: 1
” down. even tho he said it would go up.”
Indeed, i found this interesting.
Maybe he will be right. Brk’s earning coming soon.
No. of Recommendations: 4
While i have no idea what the immediate movement of BRK stock will be, my own theory is BRK will rise over the next few years. As much as there is a Buffett Premium, there is also a Buffett cost. Buffett has been adding to his Canvas and it is possible that his been his bias whether or not it is good for the stock price of the company. More power to him I say, I get to tag along but I don't get to tell him how to drive.
But his successors are likely to have THEIR canvas more alighned with Total Return. Why would they just keep painting the last guys masterpiece? And it seems very likely that a reorganized Berkshire can very likely have its value more obvious to shareholders, and possibly even have a higher ROE than Berkshire has managed as it has grown.
So I think they will, over the first few years after Warren, release stockholder value that has been bottled up by Warren's, er, Artistic Temperment.
R:)
