No. of Recommendations: 9
This is consistent with the price being lower today.“ Where would Siri be trading at today if Brk hadn’t been a huge buyer?? Obviously substantially lower.
I don't buy your line of "obvious" reasoning. Why would the price be lower?
The weighted average consensus view of all investors and traders in the world who might consider the stock would probably be a fraction of a tick different, and that's where things trade. Within rounding error, no difference.
The market price of capital goods is set by supply and demand, sure. Lower demand, lower price, makes sense. But SIRI shares aren't capital goods.
The market price of purely investment securities is set by consensus of how much profit people paying attention think they will make from it. A change in the number of such people does not necessarily mean a change in the consensus about how much profit is on offer.
How much will you bid for this bag with nothing but a hundred 100-euro notes in it? Does that offer change if there are more or fewer people interested in buying a sack of cash today? I assume not.
If I buy 10 shares of Berkshire today, will that change the market price ten years from now? No, not at all. Nothing short of getting near cornering the market will make a measurable difference to the price.
Jim
