Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of AbroadBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of AbroadBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


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.
Answer this questionContinue to Shrewd'mThis note won't appear again
Outskirts of Shrewd'm / Living Abroad
Unthreaded | Threaded | Whole Thread (171) |
Author: YoungandOld   😊 😞
Number: of 343 
Subject: Re: OT, out
Date: 03/17/25 11:01 PM
Post New | Post Reply | Report Post | Recommend It!
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.
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to YoungandOld here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 340 posts about Living Abroad. The article-length ones it recommended most:
Welcome! · 12 recs · 2024
USA to Portugal (Sabbatical) · 8 recs · 2024
Unthreaded | Threaded | Whole Thread (171) |


Announcements
Living Abroad FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of Abroad | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community