Please be positive and upbeat in your interactions, and avoid making negative or pessimistic comments. Instead, focus on the potential opportunities.
- Manlobbi
Halls of Shrewd'm / US Policy❤
No. of Recommendations: 1
continues to underperform, is THAT on topic here? WHY brkb trades so strong is a total mystery?
" Domino's is Berkshire's biggest Q3 buy — and it's not that big
Berkshire has been selling far more stock than it's been buying lately, as evidenced by its record $325 billion in cash, but it did make one somewhat substantial purchase during the third quarter.
The company's 13-F portfolio snapshot filed with the SEC yesterday reveals that as of September 30 it held almost 1.3 million shares of Domino's Pizza."
https://mail.yahoo.com/d/folders/1/messages/13142I'm laying 10 to 1 this post doesn't get 50 likes in the brkville Madrassa!!
No. of Recommendations: 3
Warren Buffett is a value investor. He won’t be speculating on Tesla or Bitcoin.
No. of Recommendations: 0
" Warren Buffett is a value investor. "
good morning, you missed the point, are T and T value investors, or traders? Thank you. btw, did you get a quote on siri?
No. of Recommendations: 2
"Why dows Brk.b trade so strong is a mystery"
I agree. My back of the envelope is to want to buy brk.b at c370 if I want a 9% compound return going forward.
No. of Recommendations: 23
[Re: The hedge fund segment of brk] continues to underperform, is THAT on topic here? WHY brkb trades so strong is a total mystery?
Very much on topic, yes. And it may well be true that Berkshire-owned minority shareholdings slightly underperform the overall market, especially in a year/decade when the market is up sharply. So why might brkb trade so well, nevertheless?
It’s because brk is a lot more than a low-fee hedge fund of public stock investments. It’s an insurance conglomerate with uncallable leverage from insurance float, for one thing. It’s rational capital allocation by one of the best allocators, ever. Its a company repurchasing its own shares when they are cheap, but holding off from repurchasing when they are dear. It’s a company that makes investments with a margin of safety, which will tend to underperform riskier investments in bull markets, but will outperform in bear markets (which we may have again, some day.)
In other words, Berkshire can grow and has grown much faster than the value of its stock portfolio. It’s hitting singles and getting walks, not homeruns, but it gets to play innings with five outs every time it’s at bat, not three, so there’s less drama but it wins more games.
dtb
No. of Recommendations: 6
"Why dows Brk.b trade so strong is a mystery"
What mystery???
Berkshire is a big position in cap weighted indexes which have been rising strongly, so it's tracking the market exactly as you'd expect. No mystery at all. There is no evidence whatsoever of a particular fondness for Berkshire shares this year, relative to anything else.
The only mild surprise is that it's not just a short term direct match in price changes lately, but also medium and longer term. Some moderate longer term divergence would be normal and expected, whether you're a bull or a bear. Nothing is "perfectly" average.
Jim
No. of Recommendations: 2
Why is BRK now trading at 1.6 - 1.7 x book value with a large cash position and no opportunities? This vs the 10 year averages of 1.3 - 1.4x book when he was previously more aggressive buying stocks and companies outright. He was also expanding his canvas previously and cannot find anything to buy presently.
Why would the market value the company higher with a large cash pile and nothing to buy? Hence I think it's an irrational valuation.
No. of Recommendations: 0
" And it may well be true that Berkshire-owned minority shareholdings slightly underperform the overall market,"
Do you have any evidence, disclosure, that T and T have " slightly underperformed" the index the past ten years? Once Buffett passes WHO is going to be calling the shots on the 300 Billion plus? Thank you.
No. of Recommendations: 0
" Berkshire is a big position in cap weighted indexes which have been rising strongly, so it's tracking the market exactly as you'd expect. No mystery at all. There is no evidence whatsoever of a particular fondness for Berkshire shares this year, relative to anything else."
What? How much is brkb up YTD? How much are the top 10 in the spy up YTD? What about the other 490 stocks? Thanks.
. S&P 500 Component Year to Date Returns
# Company Symbol YTD Return
1 PALANTIR TECHNOLOGIES INC A PLTR 283.05%
2 VISTRA CORP VST 269.03%
3 NVIDIA CORP NVDA 186.71%
4 GE VERNOVA INC GEV 135.54%
5 AXON ENTERPRISE INC AXON 132.01%
6 TARGA RESOURCES CORP TRGP 125.67%
7 UNITED AIRLINES HOLDINGS INC UAL 120.96%
8 HOWMET AEROSPACE INC HWM 106.97%
9 FAIR ISAAC CORP FICO 94.24%
10 CONSTELLATION ENERGY CEG 91.87%
11 KKR + CO INC KKR 81.07%
12 ROYAL CARIBBEAN CRUISES LTD RCL 78.77%
13 NRG ENERGY INC NRG 78.32%
14 ORACLE CORP ORCL 74.28%
15 GODADDY INC CLASS A GDDY 72.31%
16 DELL TECHNOLOGIES C DELL 72.08%
17 SYNCHRONY FINANCIAL SYF 70.15%
18 NETFLIX INC NFLX 69.23%
19 TRANE TECHNOLOGIES PLC TT 67.07%
20 IRON MOUNTAIN INC IRM 64.16%
No. of Recommendations: 0
Conservative back of the envelope numbers imo;
Current book $294B x 7% growth x 5 years = $412 x 1.4 x = $576
576 @ 9% discount rate x 5 years = $374 present fair value.
No. of Recommendations: 0
"576 @ 9% discount rate x 5 years = $374 present fair value."
I guess my question is, why is Mr.Market happy to pay 1.6 xs BV now, with Charlie gone and Buffett at 94, when Buffett was anxious to pay 1.2 xs BV, 15 years ago, when they were both, healthy kids? What am I missing that makes me less optimistic going forward since Buffett might be planning on leaving 300 BILLION plus cash to those currently managing a portion of our cash, unimpressively? WHERE is the transparency WHERE is the disclosure, I'd like to trust but verify. Thank you to anyone who can make sense of this for the elderly.
No. of Recommendations: 0
when Buffett was anxious to pay 1.2 xs BV, 15
CORRECTION< was NOT, IF you can edit a post, I don't know how?
No. of Recommendations: 0
I think Berkshire was re-rated because of the Apple position. Not the same looking forward though.
No. of Recommendations: 0
Team trump doesn't figure to be overly friendly to the guy who has opined that Bitcoin etc is, rat poison. I hope I'm wrong, but I don't see why brkb continues to trade so strong at this valuation and Buffett is 94. TO DA MOON ALICE! It's ok by me.
No. of Recommendations: 0
when Buffett was anxious to pay 1.2 xs BV, 15
CORRECTION< was NOT, IF you can edit a post, I don't know how?
You can’t. But you don’t need to, you were right the first time. Buffett wanted to repurchase shares beneath 1.1x BV, then upped that to 1.2x. He was anxious about paying any more.
