Say S&P500 drops and drops all the way down to 1000..that is a 32% drop from 1420. How low will BRKA can go in that scenario? Thoughts?
I read the quote out of context as a retweet and thought it was clever. My wife got a kick out of the fact that I was spending my time reading tweets. THAT was the brilliance behind her zinger.Now, can we stop discussing individuals (Gil, you, and me) and give either ideas or events a shot?
In a crisis BRK will probably drop just as much as the S&P 500. Both fell more than 25% during the last crisis. If you plot the prices of both from 1/2/2009 to 6/30/2009 you can see it for yourself.The link below probably won't post correctly because of its length.I've used the advance chart feature in BigCharts.Note that by June the S&P 500 had completely recovered while BRK.A was still ~10% underwater.http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=BRK.A&time=100&startdate=1%2F2%2F2009&enddate=6%2F30%2F2009&freq=1&compidx=SP500&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=64&style=320&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=13&x=43&y=3
I remember the crisis starting in the second half of '08. What happened to BRK.A versus S&P during that period?
$60 to $64 according to my chartsTF
TF, don't you think the Berkshire buyback will kick in somewhere between 64 and current price?. Do you really think it can go to 64 if S&P were to tank to 1000?