No. of Recommendations: 5
[BRK] is the one thing I haven’t - and won’t - touch as the market crumbles.
That's a laudable approach, sir. I salute you.
However, I don't know about you, but I believe there's something to the Fama/French findings that there is often a premium return from small cap vs. large and value vs. growth, in the long term. Maybe not, but I think so. It fits with behavioral economics.
So I try to keep a small cap value (SCV) index, or similar (DFSV), as a foundation stone in my portfolio, Berkshire has a similar spot.
It's not too often that I've been very confident that I see an exploitable situation in the markets, but I think it's happening now, and the pivot is from large caps to small caps, growth to value. My main vehicle for large caps is BRK, my main vehicle for SCV is DFSV, there seems to be a trade to be had. And I'm gearing up to move all available cash funds for investment into DFSV.
I need to spend some time with the reports for all my stock holdings and decide what can fruitfully be moved to the SCV play.
What can you share, Goofy, what signs you will be looking for to time your move into the market?
Mungo has a bottom indicator that seems useful.
