No. of Recommendations: 12
Back to regular BRK programming...
I have sold 1/4 my holdings in BRKB between $495-$520/share. For decades, it seemed like BRK was undervalued. Even during the brief catchup periods where it climbed quickly or enough to catch back up to S&P long term growth, it never quite got to the point where it felt like a beneficiary of "irrational exuberance".
For the first time in years, it feels like the market valuation for BRK may be anticipating more than I think the business is capable of returning. That view is also tempered by my view that investment prowess for BRK going forward is likely to be less reliable than it was during Buffett's tenure, and that creates genuine risk in a firm with over $300B sitting in cash. Of course its easy to be wrong about that and BRK share price may continue growing well, but my assessment is that the risk of that is higher than it used to be when the shares were trading at 1.4x book.
I consider it a gift that BRK share have done so well this year. Its just so rare in the more recent past to be able to say that BRK is trouncing the S&P 500. I don't consider the shares very over valued and so just "holding the damn stock" isn't something I would really disagree with. But if you are interested in raising cash in a generally high risk market (e.g., high index multiples), now seems like as good a time as any.
