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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" 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.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Mark   😊 😞
Number: of 21944 
Subject: Re: Re: Monday Flash Crash
Date: 08/07/24 6:37 PM
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At $300B+ cash on hand, Buffett, Weschler, and Coombs may have buy instructions in place at tantalizingly low prices on great companies. With the one day settlement requirement, there may be some big fish to catch for those with deep pockets should Burry’s prediction ring true. We, too, can do the same with options and buy instructions.

It's a lot more difficult for them to do it than for us to do it. Because of the large numbers. Basically one day settlement does nothing for them.

Let's say they want to accumulate a meaningful percentage of Metlife. Let's say 20% of it, or about $10B worth. At $68/share, they would have to buy about 147 million shares. That can't happen in a day or in a week or in a month, because not enough of those shares trade each day. So, they have to accumulate slowly, ask for a reporting exemption until they hit their percentage, and slowly buy each day. But they have to be very careful not to overload the bids because the price will immediately shoot up if they do. They might, just might, be able to get half a million shares on most days, and maybe a million on some days. But certainly no more than that. So, after 4 1/2 months, maybe 90 trading days, they could have 50 or 60 million shares, and then they would have to file. nd then everyone knows they are buying in, and the price would likely go up. Volume might also go up. But still to reach 147 million shares will take much longer.
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This community has written 21,448 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 · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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