Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
Unthreaded | Threaded | Whole Thread (23) |
Author: newfydog ✸⎊  😊 😞
Number: of 22353 
Subject: Re: Did nothing today
Date: 02/27/24 8:33 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 5
price matters. As the price of something rises, the risk rises and the upside shrinks. The margin of safety erodes.

I am conflicted over which wise uncle to heed. WEB somewhere pointed out that if you have won the game you shouldn't keep playing. Charlie told me if I'm not ready to ride out a 50% decline I should rot in hell (actually he just said expect mediocre returns).

I've reached a point where I can cruise on in with fixed income investments and be fine. Maybe I should stop playing the riskier game. I've done that with the tax free IRA money. The capital gains tax keeps me from getting out of most of my BRK, even though a 50% cut would hurt. The interesting thing is that the more the price runs up, the less ominous is the 50% cut. As Jim points out, it is more likely starting from a high price, but the half number is not so bad now and I worry less about a meltdown.

I feel the magnificent seven may not quite "have no clothes" but they may be lightly dressed if a blizzard arrives. Hopefully BRK is more robust, but of course it would drop with the broader market. A big drop from current numbers would be a bummer, but I'll survive. Guess I'll do nothing for now.
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to newfydog here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
Unthreaded | Threaded | Whole Thread (23) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community