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- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 25
I have held a concentrated position in Berkshire going back over 25 years. Largely to the detriment of my wealth-building, I have sold off and rebought chunks of Berkshire during this period. While I never did anything terribly rash, I suspect that my dancing in and out was a net loser -- and a meaningful one.
Then 2020 rolled around. I had grown my position to roughly 85% of my net worth over a period of about 5 years. This started to itch me a great deal as the negativity around such a high concentration felt compelling. I won't get into the arguments for why this is a bad idea because you probably know them all well or you wouldn't be on this Board.
So I did a perfectly logical (or illogical) thing and exchanged a large slug of my Berkshire for a variety of index funds including QQEW. Fortunately, I maintained a sizable and concentrated position in Berkshire -- just not quite as concentrated (down to about 50% for those keeping track).
Anyway, to this day I maintain a dollar calculation of precisely how much poorer I am due to this exchange. Now, I appreciate that being wrong does not mean that my logic was faulty. I may have been unlucky, I may have been foolish, I may have been both or none. Either way, I am definitely a lot poorer for following my 2020 instincts.
A sale at these levels is hard to argue against. The market is frothy. Berkshire is frothy. One could argue that the macros are lousy. One could argue that the management transition has risk. There is a high probability that a lower re-entry point will be offered... and a possibility that one won't. Buffett himself has not done anything compelling regarding the stock or the market indicating it's time to buy.
On the other hand, the statements above regarding discipline, focus, understanding, etc... are very much true. Logic can be our friend or our enemy -- and choosing when to start and stop the clock is always a factor as well.
No. of Recommendations: 3
Love your self awareness. I am 95% plus in Berkshire.
No. of Recommendations: 1
" On the other hand, the statements above regarding discipline, focus, understanding, etc... are very much true. Logic can be our friend or our enemy -- and choosing when to start and stop the clock is always a factor as well."
Confession time is very cathartic. Starting in 2006 I started to get very disturbed because Buffett refused to authorize a buyback " at material discounts to IV". Of course, the experts in brkville jumped me for questioning Uncle Warren. By 2008 he started to sell off his life's work via the foundations and STILL, refused to authorize a buyback at that time. I started to sell calls more often. If someone has the time, if I put 1 million in brk in 1992 when I retired and never touched it, what would be the market value today?
NOT my IV net worth, UNstable genius, based on today's bid. Thank you.
No. of Recommendations: 12
On 12/31/1992, Berkshire Hathaway A was $11,750.
On 2/27/2025, Berkshire Hathaway A is $754,825.
This is a roughly 64x gain -- so that $1M would be $64M and some walk around money.
An equivalent $1M in the S&P 500 would be worth $25M with dividends reinvested.
Large numbers aside, the guy w/ $25M lives one hell of a life. The guy with $64M does the same and probably has a net jets subscription.
Sources:
https://www.statmuse.com/money/ask/brk.a-stock-pri...https://ofdollarsanddata.com/sp500-calculator/
No. of Recommendations: 1
' On 12/31/1992, Berkshire Hathaway A was $11,750.
On 2/27/2025, Berkshire Hathaway A is $754,825.
This is a roughly 64x gain -- so that $1M would be $64M and some walk around money.
An equivalent $1M in the S&P 500 would be worth $25M with dividends reinvested."
WOW, I guess I never really wanted to know. IF, IF, Buffett had authorized a buyback at material discounts to IV in the 2008 donation letter, I would have mucho extra millions today. When I was in the game I had a huge edge, after I left the game, it took too long to realize without the daily contacts, I had very little edge. Thats why the kids and grandkids are 80 percent index funds, Buffett got that right. Amazing. Thank you, at least I never shorted it, lol.
No. of Recommendations: 13
Hindsight is seldom productive. I could just as easily calculate how much I "lost" when a friend in the auto business recommended Telsa years ago. I explained to him how it was everything Buffett avoids, speculative, no solid cash flow, hard to value. In the end we both have done well, and his success spawned a ummm, well lets just say controversial leader, while mine is still lead by the kindly and wise grandfather.
No. of Recommendations: 1
I have to admit I’ve been selling some Berkshire lately. I’m deworsifying into cash/tbills.
I was at 95% Berkshire to cash, and now I’m 83/17. I’m not mad at my decision so far, but I did generate a big tax bill which was not thrilling.
No. of Recommendations: 0
Large numbers aside, the guy w/ $25M lives one hell of a life. The guy with $64M does the same and probably has a net jets subscription.
I would have thought a guy needed more than $64M to afford a Netjets subscription>
No. of Recommendations: 1
I remember those debates... "jumping on you " was putting it mildly !!
No. of Recommendations: 2
Interesting thread.
BRK is now c30% for me rather than 95%.
My other big positions in order of size (less than brk) are;
Nike, oxy, baba, tencent, alphabet, abnb, dg. (Descending)
And a few odds and ends.
Personally I'm very comfortable with that, sleep well at night etc.
No. of Recommendations: 1
“ I remember those debates... "jumping on you " was putting it mildly !!” I grew up in Brooklyn Hbird, very thick skin. I think we have been chatting 25 years or so, lol. Most women can’t put up with me for that long. ♥️
