Halls of Shrewd'm / US Policy❤
No. of Recommendations: 5
I believe that the future will present some good opportunities for investors and BRK management to acquire BRK shares at fair/attractive levels based on then current earnings/book value/intrinsic value.
In the past, Warren and Charlie at the helm provided a "safety net" to investors.
Their remarkable 60 year record earned the confidence of investors that any setbacks, minor or major were only temporary, as they proved to be.
Abel has not yet earned that confidence, and is in fact 5-10 years away from earning that confidence.
Any setbacks will immediately throw doubt on his ability, sending shares significantly lower, similar to the price action of most other companies.
If you believe that Warren and Charlie built BRK to last, and that they are capable of accomplishing that goal, I believe there will be significant and relatively frequent buying opportunities in the years ahead.
The downward price action since May, on absolutely no negative financial results, I believe is just a little taste of what's to come.
What will happen if BRK has a couple bad quarters? What if they have a bad 18-24 months?
It will be interesting to see how things play out!
No. of Recommendations: 9
The downward price action since May, on absolutely no negative financial results, I believe is just a little taste of what's to come.
I just put it down to the weighing machine being awake for a while.
Relative to market, Berkshire has been sliding in price steadily since around April 14. Since then:
BRK/B -7.81%
SPY +11.54%
Relative gap 19.36%
That's a big divergence, sure, but it's not exactly a surprise that Berkshire's price was going to be weak at some point.
Price to known book was 1.759 on April 11 (!)
Book is up a bit, so the multiple is down to 1.609
Not even half way back down to the average multiple of the last 20 years.
The May slide relative to market was almost a perfect symmetrical unwinding of the striking March rise relative to market, like the grand old Duke of York.
Rationality never lasts. I'm sure lots of prices will do nonsensical things soon.
Jim
No. of Recommendations: 0
like the grand old Duke of York.
I think a person would have to be at least a certain age and of a select few nationalities to understand this.
Aussi
No. of Recommendations: 1
like the grand old Duke of York.
...
I think a person would have to be at least a certain age and of a select few nationalities to understand this.
Never fear, anyone interested can be rescued by our hero Wikipedia
Jim
No. of Recommendations: 1
Each quarter, people anxiously waiting for Berkshire’s 13Fs and piggyback on Buffett’s next stock picks. Though that may not have been very profitable historically, it’s a bit ironic that people are less enthusiastic on this last, mega pick of Buffett on his successor.
No. of Recommendations: 1
guess I qualify :-)
