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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", sykesix asked the members: "What do you do if you arrive early at movie besides go to the snack bar?" 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: Umm ✹🐝🐝  😊 😞
Number: of 22989 
Subject: Re: Cnbc, Carter Worth did a tech
Date: 12/25/24 11:42 PM
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No. of Recommendations: 9
"It's probably an OK time for a hold of over 10 years, since any entry price now will seem good compared to the ending price. But the valuation levels right now are noticeably above the usual, so I'd expect a flattish year or two at some point. You'll almost certainly see better times to buy.

One possibility: Sit on cash for now. Sleep well. Buy the next time it's trading under 1.4 times book per share. (use the highest book per share seen to date, as it can dip temporarily in bear markets). My hunch is that this opportunity will happen soon enough that the entry price will be lower than today's price, and you'll be earning interest between now an then."


While I think everything you said is perfect. I would offer up a potential middle ground.

Maybe invest a decent chunk of the money now (if you plan to hold for at least 10 years), maybe 20-40%. Then make regular smaller periodic investments (maybe monthly, maybe a few times a year depending upon how much you have to invest), until the price/book ratio drops under 1.4 and then invest the rest.

By making regular periodic investments you smooth out the importance of the entry point in the eventual return. You won't get the best long-term returns, but you won't get the worst either and should do better than average over that timeframe. It also helps if BRK stays about 1.4 book for a real long period of time. Not likely, but not impossible either.
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This community has written 22,499 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 · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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