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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: Said   😊 😞
Number: of 21943 
Subject: Re: Some Thoughts - Maybe Too Many
Date: 09/18/24 3:43 AM
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No. of Recommendations: 17
why most of our recent posts on our board are short term oriented. We share news about Ajit selling stock and wonder about the implications. We have a lot of posts concerning puts and calls – trying to profit from BRK’s volatility. We do on occasion have people post about their early involvement with BRK – posts I thoroughly enjoy. But we don’t talk much any more about fundamentals and factors impacting BRK long range.

The answer to your question (bold by me) might be simple: Because having owned Berkshire for many years/decades now we all simply expect and trust Berkshire longterm to continue earning money and increasing it's value at a rate now similar to the S&P, and therefore it's current price less and less has the potential to influence our decision to be longterm shareholders.

That's the opposite of owning NVIDIA where one has to think about it's future, about potential competitors, about an end of the AI craze etc. etc. - - - and to always see it's then current price in light of those expectations one has about it's future, and to constantly make a buy/sell/hold decision.

Not so with our company, less maybe than with any other one on earth. As larger it gets as more unmovable it gets and as easier it gets to trust it to be as (positively) boring in the future as it is now, to be even by unfortunate events like the departure of important figures (may he still steer it at age 100) only temporarily shaken, knowing that it concerns only the price but not the value as long as it's culture remains more or less intact.

As long as the latter is the case it's therefore easy to trust the ones representing this culture and to leave thinking about "What can Berkshire do with it's continuing cash flow ..... with it's cash hoard" to them, to stop thinking about that. It's a matter of becoming lazy, of being able to become lazy, because of trust (in the people and the fact that the tanker can't easily sink). Not to forget the point of one post that being Berkshire shareholders for such a long time now means many here are a)old and b)wealthy, and both lead to putting more weight on safety than on chasing the highest returns (other than for sport, with a fraction of the portfolio) as it might have been for the same people 20 or 30 years ago.

This on the other hand explains the short term posts about options. If Berkshire's longterm future is of such little interest now that most of us simply have the majority of their Berkshire shares under their pillow and intend to continue sleep well on it for many years to come, then all that remains and wakes us up is short term stuff, regarding both, actions (buying/selling options) and words (posts).




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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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