I am a terrible investor and I seem to gambling instead of investing.My question is, would it be okay to put everthing I have into this stock. It seems that Warren is good at what he does. To be honest I just want to sleep at night.Thank you
I am a BRKA stock holder. Let me give you both the pluses and minuses, if I may:
Positives, Warren Buffett is a very shrewd investor, BRKA is not a stock in conventional sense, it is a mutual fund. This way, he has spread the risks..has investments in diverse areas, insurance, rail road, consumer goods, furniture etc. I think the stock is about 20% undervalued. The right price should be 185K.
Negatives: Warren is an icon, after he is gone, there is no assurance that this company will be run the same way. Steve Jobs and Apple situation. He doesn't believe in doling out dividends. Since the stock is open to market fluctuations, the price of the stock can go down. As an example, BRKA hit 150K in 2007. In 2008 financial collapse it went down to 85K.
Now, make up your mind. Good luck!
Berkshire Hathaway is, in effect, a great mutual fund. Putting a lot of money into it is fine but some money should go to other assets. Others have suggested dividing into four parts. OK, 25% to BRK-A or BRK-B depending on how much you have; 25% to bonds (short term at this point - a mutual fund like one of the Vanguard short-term funds); 25% to energy - I like Chevron (CSX?) and Enterprise Produces (EPD is an infrastructure company) but a conservative mutual fund would be good; 25% to health care - I like XPH (a mutual fund of pharma stocks) but some combination of Pfizer (PFE), Johnson and Johnson (JNJ), and Abbott Labs (ABT?) would be good also.
The whole portfolio will go up and down but is likely to do pretty well.
Not everything, but as a major part of your portfolio BRK is as good as there is.Have owned this company since the early 90s,is a major piece of my investment portfolio,has done very well in this time frame and I think they have the best business model ever.I sleep well .
csr is right. I wouldn't be putting it all into Berkshire only because it is never good to put everything into anything. The market looks to be a little bit frothy at the moment. If I were in your shoes I would do the following. Divide your capital into 3. One third split into 4 stocks .... berkshire and 3 with other exposure. Healthcare is good (Merck is timely imo), Energy is good (although Berkshire has some exposure) (COP is good), and something with international exposure, perhaps ABB (swiss technology co). Wait for a panic and buy. Do the same with the remaining 2/3 over the next 6 or 9 months as opportunities allow.
Read as much as you can. Barrons is good, the Economist is good (both in most libraries).
Be calm ....... Emulate Warren ...... be scared when others are greedy and greedy when others are scared. I hope this helps!
I've been a serious investor for almost ten years and I have done a considerable amount of research on Warren Buffett and BRK. Putting your money into BRK is essentially like putting your money into a fund. BRK is more or less a very large fund. Afterall, BRK is a holding company. So, you are putting your money into a fund that is run, managed, and overseen by one of the greatest investors of all time. I would tell you that if you were going to park your money anywhere and wanted to be comfortable with it, then BRK is the place. I have invested a little over $10,000 in BRK. I bought in at $79.85 and have been riding it ever since. I can honestly say that I have ZERO intention of ever selling BRK, except when Warren steps down. When he does that, I am going to sell immediately, pocket my money, and when all the other sellers get out, I'm going to buy back in a nice discount. Otherwise, I'm not selling. The succession plan for the company has been well thought out, the organization of the company is ingenious and simple at the same time, and the financial stability of the company is impeccable. Best of luck to you. And remember, DON'T gamble in the stock market, or else you'll just be giving your money away.
Warren once said that you need to invest in a stock that if the markets shut down for 10 years you would feel comfortable enough to sleep at night. BRK-B is such a stock. I have a considerable investment since 2010 and have not been disappointed. You can't go wrong with this stock.