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- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 0
Berkshire's price has now dropped more than 8% from its peak of $373.34 just two weeks ago.
Does anyone have any thoughts/guess as to where/when it may find its footing?
Phil
No. of Recommendations: 4
I did my first sales in years at $371. I'm a firm believer in not trying to time the market, so I feel pretty good, sort of like a kid who did something stupid and got away with it. I thought I'd look for some high yield stuff, but I may just plow it back in. The board let me know when it was richly priced, and I too would like to hear when it looks like a time go send the money back home.
No. of Recommendations: 1
bright side is we will be making more in interest on the cash holdings!
No. of Recommendations: 1
my guess around $320
my idiotic formula is the last two quarters buyback avg prices, $335 and $305 averages $320...
But I'm all full up with stock, if it goes below $305, i will likely buy some
No. of Recommendations: 10
No in answer to your question. Anyone claiming they do know, as WEB would say, would only be making the astrologers look good.
No. of Recommendations: 2
I think (apart from Mungo's haircut for what was Apple overvaluation), BRK is and will be caught in the downdraft in stocks, caused by the mismatch between real yields on bonds and stocks.
First approximation, treasuries are yielding 2.4% +/- 10 bps for 5-30 years. Stocks, 4.14% assuming both P and E are automatically inflated. That's a risk premium of 1.74%. This premium has been 4-9% in this century. Either real bond rates have to fall to zero or less, or stock prices have to fall to at most 15 P/E.
I have no idea which one of these two outcomes is more likely, because anybody who has ever tried to predict the movement in interest rates, has always gotten it wrong. Always!
No. of Recommendations: 8
'Does anyone have any thoughts/guess as to where/when it may find its footing?'
Agree, who knows with the crazy bond market & yields rising so! I am planning to add if price dips to 325 and add even more if it approaches 300 (around 1.2 P/Peak B).
Happy WEB clearly saw times like this this coming with enormous QE, 0% rates for so long, growing deficit and he has acted accordingly. Imagine he & CTM are excited about the growing fear & Vol and the opportunities that may present themselves over the next couple years. I still don't see him loading up on longer dated Treasuries. Hope some 8% preferreds & warrants (like OXY) present themselves. Interesting times, but we are in great hands!
No. of Recommendations: 6
Greedy of me, I know, but at times like these, I wish WEB was ten or twenty years younger 😎
No. of Recommendations: 4
Don't fret unnecessarily, Todd, Ted, Greg and Ajit aren't rookies.
