Cost basis of BRK in my IRA?
The cost basis means zero except for keeping score-as in how a particular investment has done relative to the market. Isn't 100% of the proceeds taxable from a traditional IRA?
Roths are totally different because you pay the taxes up front and the proceeds are tax free. That's why I'm slowly moving funds from my traditional IRAs to my Roths.
Lol i luv axpeecop how i get you to disclose your cost basis in brk by calling u out canary! I must say well done! By buffett!! Stop riding his coattails all of your life son.
I'm also short puts against BRK in both my personal accounts and IRAs so you could say I'm willing to book your 20% correction if Buffett dies bet.
In 1986 I bought BRK in my IRAs for $2700 per share. In 2007 and 08, I sold 50% of it between 130,000 and 150,000 because relative to the rest of the market it looked expensive and I wanted to start selling cash secured puts in my IRA.
In August of last year, I started to move that cash back into BRK and I'll continue to do that until it trades 25% above book value which is still well below its long term price to book ratio. Another factor in this decision is that put premiums are lower now than I've seen in years. It's starting to look like 2008 all over again.
Just 6 months ago PM was trading under 62. It's up 35% plus dividends since then.
Is it still a good buy? The dividend yield is about 4% and it should double over the next 6 years. If the you should buy now and later discover that you overpaid, even if you no longer have cash to buy more shares, you'll still rest easy knowing that PM has an aggressive share repurchase program. So regardless if you never buy another share or not your effective ownership position will go up by about 1% per quarter.
Yes, you may be able to buy PM under 80 but if you're waiting to buy it there you may never buy it at all. PM should be a core holding for all investors unless you're a masochist then look elsewhere.
Bought more shares today at 85.1 per share in my Roth IRA. I'm embarrassed to say that this particular account owned zero shares prior to this buy. Also bought IBM near a new all time high of 105 in the same account.
PM currently only makes up 2.5% of my Roth assets. I'm willing to dramatically increase this figure over the coming years so I'll be adding shares on any weakness.
Funded the purchase through selling some MRH at 19.
Whenever you buy, just hold on to it because they are increasing dividend by 10-15%/year. This will be $ 150 stock in 3 years( or earlier).
Cigarette addiction to PM brands are increasing in emerging countries and their revenue growth is increasing by 20% y-o-y.