Post #9338 by mungofitch on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

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1. Brk was approaching trillion dollar mktcap. Due to indexing, the bigger the mktcap, the more money for the index goes into the individual name with highest mktcap.

It's true that a whole lot of money goes into index trackers like clockwork at the end of each month, due to scheduled payroll savings plans. Traders often like to scalp them by buying a few days earlier.

But in this case the other explanation seems simpler: market going up, Berkshire tracks the market closely over short time periods, so Berkshire goes up.

Lately the rally has been concentrated in financials including Berkshire, and even more so among insurers. Look at the graph of KIE (insurance ETF) versus Berkshire in the last year. Come back in a few minutes and you won't be able to say which graph is which.

Jim

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