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Berkshire Hathaway Inc. Message Board

  • hobbs_o hobbs_o Aug 24, 2002 6:44 PM Flag

    How much is too much (ie BRK)

    I found a quote from 1/66 partnership letter that sheds some light on Warren's thinking:

    "We might invest up to 40% of our net worth in a single security under conditions coupling an extremely high probability that our facts and reasoning are correct with a very low probability that anything could drastically change the underlying value of the investment."

    Unfortunately, Warren's age (recognizing his importance) might put the `very low probability' part of that statement at risk.

    Hobbs

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    • ------------------------
      It is my hope that this excellent board will
      refocus on investment matters and avoid any
      unnecessary bickering.
      ------------------------

      I love that idea. I'm perfectly willing to discuss
      investing and only investing. However, at the
      end of every post, I will briefly state the
      truth regarding my identity, i.e., that I am
      not dealraker. I hope that's ok with everyone.

      --
      No, I'm not dealraker. Yes, babyb is wrong.

    • Regardless of the merit of gecko's posts, the evidence for him being dealraker, as presented in your post, seems thin.

      Babyb probably have more concrete evidence to substantiate her claim, but if it were merely based on what you have posted, I believe gecko does have cause to complain - that is not to say, of course, that one cannot complain about gecko's post too. :-)

      Sometime I think it is babyb's over zealous admirers that tend to show babyb in a bad light. Also, while the assumption that newcomers are inferior is understandable given the exceptionally high standards of many of the board's regulars, it can sometimes be unnecessarily annoying to newcomers who have a genuine interest to participate and contribute to this board - I am NOT necessary referring to this particular case (since I haven't read all the threads), just a general comment.

      It is my hope that this excellent board will refocus on investment matters and avoid any unnecessary bickering. I try to be as objective and neutral as I can be in my comments above but I apologies in advance for any offence that I may cause.

    • ---------------------
      "she's not as smart as everyone says"
      ---------------------

      Actually, you misquoted me. The fact that babyb believes that I am dealraker causes me to question her intelligence.

      -------------------------------
      "she's unable to intuitively sense the intrinsic value of a stock"
      -------------------------------

      Again, you misquoted me. It is not even an
      exact quote! I said that I SUSPECT that babyb's methods are SIMILAR(similar being the key word) to the NAIC method and that the NAIC method is for people who are not good at valuing companies.

      Also, I said that babyb had "lots of great ideas," which looks like a complement to me.

      -------------------
      talking about investment clubs is the final dead giveaway, since dealraker is the only one that admits to belonging to an investment club.
      -------------------

      hah, only one person belongs to an investment club. whatever. I hope you are never on a jury... I can see it now... "John must be guilty of this crime because the guilty man is a lawyer, and so is john."

      -----------------------
      "it is the regulars who are arrogant."
      -----------------------

      Dealraker is a regular, isn't he? am I calling myself arrogant? What I actually said was: "The real irony here is that the regulars on this message board frequently accuse newbies of arrogance. However, it is the regulars who are arrogant; they feel that they are superior investors when there is no evidence to support this claim."
      The accusation that newbies are "arrogant" is an instance of "pot calling the kettle black".

      -------------------
      "she's overrated by everyone here"
      -------------------

      This is nothing more than an obvious fact.


      -------------------
      if that isn't bashing, what is it?
      -------------------

      it's bashing if and only if I am misquoted and taken out of context. Thanks for proving my point, factoid.

      --
      no, I am not dealraker; yes, babyb is wrong.

    • yes, you are dealraker
      yes, you did bash babyb

      just re-read your comments since you scurried in here under the gecko alias:

      "it is the regulars who are arrogant."

      how many times in the past has dealraker called iluvbabyb arrogant?

      "she's unable to intuitively sense the intrinsic value of a stock"

      how many times in the past has dealraker made disparaging comments about her investing ability?

      "she's overrated by everyone here"

      another classic dealraker line.

      "she's not as smart as everyone says"

      another dealraker comment from the past

      "I'm sorry but that doesn't qualify as bashing. It just doesn't; end of story"

      if that isn't bashing, what is it? the "end of story" tagline is another dealraker trademark. talking about investment clubs is the final dead giveaway, since dealraker is the only one that admits to belonging to an investment club.

      quit acting like a gnat. end of story.



      http://search.messages.yahoo.com/search/messages?tag_M=geico_the_gecko&fname_M=t
      xt_main

    • ...I am not....but WHO IS ABLE IN THIS WHOLE FINANCIAL WORLD ,TO DO DEALS LIKE THIS THAN
      WEB....so:I may not NOW...but maybe TOMORROW...!
      http://biz.yahoo.com/rf/020825/bizfeature_convertibles_1.html
      SALUDOS!!

    • I'd disagree with only one part of your strategy in that I'd put a large % of assets into BRKa/b AT A PRICE. The price will change with time: a couple of years ago I was able to buy BRKb's below 1500. A good price. (I confess that I started buying at 1800 in dollar cost fashion, and doubled my unit buy when it went below 1500.) A couple of weeks ago, I thought that under 2000 was a good price also.

      _ _ _

      IMHO, the reason you attracted so much ire is that this message board tends to be cliquish. Inclined to display many of the diseconomic psychologic behaviors outlined in Charlie Mungers talk that's archived on Whitney Tilson's site.

    • I'd be willing to put 100% of my portfolio in one stock, and here's why:

      It will be many, many decades until I retire, and I hope to add a lot of money to my portfolio in the future. So even if I put 100% of my portfolio into berkshire stock, I'll only be investing a tiny percentage of my future net worth in the company. So no matter what I do, I'm diversified.

      --
      MarknMT asked me to clarify things, so I will:
      No, I am not dealraker.
      Yes, babyb thinks I am dealraker.
      Yes, babyb is wrong.
      No, I did not "bash" babyb.
      Now, everything should be clear.

    • I currently have 3 holdings. Holding #1 is 45%, Berkshire is #2 at 27%, Holding 3 is 14% and cash is 14%. Disregarding any price flucuation, I'd like to bring Berkshire to around 35% of my portfolio and bring Holding 2 to around 35%(not actually selling any, just adding more money thus lowering overall percentage) and have Holding 3 at around 25% and have 5% cash.

 
BRK-A
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