It was appx. $117.50 first of this year which means we have grown by 33%. I believe we can repeat that performance due to the improving economy and lets not forget interest rates are due to start rising which will help banks like BAC and WFC. and BRK has the option to buy those BAC shares for what was it $7.50 a share, that has to add billions not to mention the cash reserves to gobble up more good deals. This stock is just a cash cow with the best pro in the business at the reins.
I figured CUBA would break out of that loopedy loop chart and head dead north!!!!
Sentiment: Strong Buy
J, much better to sell the bricks, siding, roofing, paint and other components to the the people building the house and then exit the picture-- at least you know you are getting paid for your products. Same for sales from remodeling where the contractor or homeowner pays for the products and then is responsible for doing the work (or paying off the credit card or home loan used to purchase the products for the job). Much more risk involved in blanket mortgages. They already do mortgages through various subsidiaries, but can have tighter control on credit risk. Freddie and Fannie are too much bulk mortgage risk to take on.
Jad, I can understand the dismay with a stock that does not pay a dividend-- some people want to see that as a part of their investment because it provides some cash flow for the year and can be construed as a sign of normal operations. Berkshire is not that kind of vehicle, as you well understand. There is an entire spectrum of dividend plays with MLP's and REIT's at one end and the BRK's at the other. The choice is yours as to which investment path to follow, and quite frankly, it is not for anyone else to knock or question-- you park your money where you see fit.
On the point of "unscrupulous stock pumpers", I can somewhat agree with that sentiment as well, where people expect BRK to continue north and so buy continually buy more the whole way up. However, at 17-18 times earnings, this is hardly anywhere near a momentum play. GE trades at a higher multiple with a lackluster balance sheet, heavy bureaucracy, and misaligned management. Now, if BRK was trading at 25 times earnings and making 3-4% moves every day, then you would quite correct. However, that is quite far from reality.
The truth is that BRK is quickly adjusting itself away from from a stock investment vehicle to an autonomously managed but centrally organized (via a common balance sheet and income statement) conglomerate. While a significant amount of book value is still derived from their $100 billion+ equities portfolio, their earnings stream is overwhelmingly dominated by core businesses. Some people might look to the overwhelming size of their insurance float, closing on $100 billion, as an unstable or unsustainable component of business value. I think Berkshire is well aware of that sentiment as well, deploying larger sums of capital into hard-backed assets.
For some of us, the inner-workings and business/investment philosophies of Berkshires are a thing of beauty. In its purest sense, take cash made from a float, invest into equities. Receive dividends and buy a company.
Chris, as long as WEB is alive AND BRK hasn't begun paying a regular cash dividend AND unscrupulous stock pumpers continue to attempt to con other folks out of their money (also known as"fleecing the sheep"), I will continue to post.
Happy Holidays to you too.
different buying it at 2 rather than 60.does a deal with obama for release of c ship,stock goes to 60 min,berkshire adds 10 pts overnight and wb controls a 5t industry.
Jad, you sold at 82. I never understand why you would care about a stock that you sold in the 80's .If I were you, I wouldn't be showing my face on a stock board that you missed 75-100 % percent move . As I recall, you also stated that Berkshire would never go above 1.2 again .
thanks for your reply.anyway of contacting their ir people and recommend they look into fannie mae and freddie mac.i think they are giving up a huge opportunity there.he used to own them in the past when they were 10x higher in price and not earning as much.just curious.
i am new to this stock.you seem to be informed on this company.i think wb should look into buying fannie mae and freddie mac which he once had.its dirt cheap and he can control the entire housing market.they only make 25b net per year.
First,not all their stockholdings are down for the year,their bank holdings for example have done quite well.and don't forget the divedends they receive which is a billion dollars or so yearly. Their derivative book has also done well in this up market,but the real focus of Berkshire is now on their wholly owned businesses,90 or so,buying new ones to add to the exisiting stable,and their equity investment/funding deals like Tim Hortons/BurgerKIng and Heinz.They have the best business model ever conceived and execute it quite well.For example their revenues will be close to $200 billion this year which is a 10% increase over 2013.Can you give me the name of another company of their size that has done that?
80% of Berkshire's earnings come from 70 plus Companies(Not including 500 plus companies that the subs have added too) that they own ie Burlington , Luberzol , Geico, Marmon etc... Stocks like Coke are cash cows because Berkshire's cost basis is 3 bucks. Berkshire paid about 1.2 billion for its coke stock. The money Berkshire gets from Coke is about 700 million a year just from divs.
IMO, BRK-B "the stock", outperforms BRK-B "the business", for the simple reason that people get excited and bid the price up faster than the business actually grows. Just look at the vast majority of folks who post here. Judging them by their posts, they are unabashed stock pumpers. They buy at every increasing prices because the price has been rising, and, the price rises because they continuously buy at every increasing prices. BRK-B has become a momentum stock. Eventually the music will stop, the bubble will burst, and some poor sucker will get stuck holding this hot potato. Enjoy it while you can. JMO.
The YTD market performance Its top five holdings?
Seriously, I'm new to Berkshire and honestly don't understand howi it does so well while its major holdings look lackluster this year...Must be the trains and insurance businesses?
VOO, GE, WFC, BRK.B: Large Inflows Detected at ETF
By BNK Invest, December 16, 2014, 10:54:42 AM EDT
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard S&P 500 ETF (Symbol: VOO) where we have detected an approximate $379.6 million dollar inflow.
Sentiment: Strong Buy