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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: DragonTales   😊 😞
Number: of 21943 
Subject: Re: Paypal
Date: 05/17/23 10:26 PM
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I'm not a big fan of chartism.
But if you want to lean that way, here's a suggestion that improves things a bit: ignore what the price chart is doing.
Rather, look at how it's doing relative to other things. That's something that trends much better than the absolute price itself.
Markets are noisy. Trends of underperformance and outperformance tend to be both smoother and more sticky.

This link gives you a graph of the ratio of Paypal's stock price to the average large cap.
stockcharts.com: SharpCharts | StockCharts.com...
A horizontal line means it's tracking the market. A rising line means it's outperforming. Definitely not the case at the moment.


Interesting chart, thanks Jim! But how would you use that? i.e. what's the actionable information? When I chart it as a line, and increase the timeline to 2.5 years, I don't see when it would move to a "buy".

stockcharts.com: SharpCharts | StockCharts.com

The ratio peaked in February 2021, and then there was a sucker's bear trap May-July 2021. Then basically downhill with a dead-cat bounce in the Fall, six months of "tracking the market", and now another jump off the cliff.

I was thinking of using the EMA3>EMA8 more like Jim's Go Away in May EMA. Wait for the initial date, and then tweak the timing. If someone was thinking about getting into PayPal anyway, one might be able to tweak the entry date to at least put it in their favor a bit. Maybe akin to catching a falling knife that's falling down a set of stairs. It might hurt less if you caught it bouncing off a stair. With the hope that it was bouncing off the floor at the bottom and won't fall farther.

Tails
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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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