No. of Recommendations: 19
I'm not happy coming to this conclusion, after over 20 years with a big Berkshire position, and I admit to feeling some regret, and maybe I am acting too quickly. But this is my time out at $425, and I think the price would have to be a lot lower to get me back in. Berkshire is probably still a reliable way to stay rich, if you're already very rich, but I'm not rich enough not to want to get richer.
Not that anyone should care, but after a bit more than 2 years with no position in Berkshire, I am now back to a small holding at $477. After 2 1/4 years, I will have missed out on a 12% returs from Berkshire but with the S&P 500 up 41% in the same time period (including dividends) and my own stock picks doing a fair bit better than the S&P, I have no regrets.
I have some misgivings about Berkshire's investment opportunities under Abel, but I had even more misgivings with the acquisitions Buffett has made in the last 10-15 years, and I think that maybe Buffett was running out of steam. I think Abel will prove to be an able operator, and I am somewhat reassured about the big energy businesses and their legal liabilities, and also their opportunities in a world that will need a lot more electricity. I like the smaller Apple position. And the huge cash hoard looks like it will be saved for opportunities at much lower prices than today. It also means the shares would likely not be as downwardly mobile as the rest of the market.
Anyways, I'm glad to be a shareholder again!
DTB
