........given Greenspan's speech late Friday.
We'll see if that, combined with the holiday break will
calm volitility.........something that we need before
the upcoming shareholders meeting..........
.........It's been over two weeks since I called
GRN, but at that time the official party line was
still ....."some time in the 4th quarter pending
government approval"......whether we learn more specifics I
guess depends on what questions WEB will take next week
at the meeting.....good luck in your pending "b"
What is the exact date of the GRN/BRK deal? I am
going to pick up some "b" shares before then. I still
go back to late June '98 on Wall street Week when
Laslo Birini stated that his favorite stock for the
rest of '98 was BRK "b" shares.
You can convert an A share for thirty B's an any
time, so therefore a B share will always be (plus or
minus a few dollars) 1/30th of the value of BRKa. You
cannot convert B's to A's.
Our one share of A was
given to us on Dec. 18, 1997 and was valued at $46,100.
Until recently we saw it go steadly upward to $84,000.
It dropped 5 0r 6 thousands on several occasions
during that perod, but never stayed there for long. It
is down where it is now because of panic selling --
no other reason. After the merger with GRN and after
Buffett gets through with making some good buys in this
down market it will soar again.
building project will not be underway before early Oct,
you should see a good gain over the next several
months. If you are dealing with an online brocker and
getting low brokerage fees as we are then the cost of
sellig your B shares a few at a time will be relatively
The price of BRKa should always be approximately
30x the price of BRKb. Thus the correlation should be
1.0. The advantage of owning the B shares is
incremental liquidity. As other posts have mentioned, if you
need to raise less than $60,000, you can. The
advantage of owning the A shares is greater voting rights
(not that it matters, Mr. Buffett will still own
effective control with about 35% of the stock after the
merger with General Re). The other advantage of owning
the A shares is being able to direct your portion of
Berkshire's charitable contriubtions each year to the charity
of your choice (I don't know the specifics of how
this works as I own the B shares). Good luck in timing
your sale! You may want to consult a good chart
reader. I think most Berkshire investors (me included)
are lousy at reading charts and picking short-term
swings. We tend to have a more long-term view. The one
thing I've noticed since the B shares have been alive
is that the price of Berkshire tends to take off in
the months preceding the Spring shareholders meeting.
This may be coincidence, however.
...if any of you are true Berkshire shareholders
who believe in the investing philosophies espoused by
Warren Buffett and Benjamin Graham, is a further decline
in the market. That is what I would desparately
As for market forecasts, if anybody knew the market
was going to fall in Aug. why didn't they tell
anybody in Jan? If they didn't know in Jan. why should
anybody believe they know now? To paraphrase Peter Lynch,
market forecasters have predicted 41 of the last 9
declines in the market.
Point? It's a waste of
brain power trying to figure out what the market
will/will not do. Be happy when the market tanks and pick
up what you want.
I agree with your post that points out that those
whom truly live by Graham/Buffets' teachings should
want a further decline in the market. I'll even take
it one step further....a market decline at this
point in time - when the world's greatest invester is
about to gain control of a tremendous amount of premium
float - is even more attractive than it would normally
be. It amazes me how many BRK shareholders do not
espouse the philosophy of Mr. Buffett, instead focusing
on short term market gyrations.
...........a steep market decline is a worrisome
thing to me..........the investment opportunity is
bittersweet.....too much human suffering goes with it... ..go down to
the unemployment line and tell the guy with three
kids to feed what a great chance he's gonna have now
to load up on BRK..........then duck.......
I work with a charity that received a donation of
this stock a little over a month ago. The shares were
just transfered to our account last week. The donor
suggested we hold through the current downward trend. I
know very little about this stock, and would welcome
sept 8, 1998
your charity has been truely
blessed. The donor has given your npo the best of all
possible gifts !
in the good times
berkshire-hathaway will outperform the s&p 500 by 5 to 25+ percent.
In the bad times brk will never do as badly as the
index. You now possess a security which gives you all
the advantages of the best mutual fund and none of
you will pay no fees, no taxes
on distributions, no exhorbitant saleries to ill
prepared-high turnover fund managers and yet your charity has
become a junior partner to the wisest investment manager
of all time - who has made a commitment to serve for
life and beyond.
you may sleep soundly at night
knowing that over the long term this asset will help your
charity to grow and grow. You could borrow against this
asset - but never sell it - because there is no other
security you can buy that consistently provides
significantly above average return on investment combined with
the lowest possible risk. This investment has a
moodys 3a rating and when the crunch comes it will be
safer than u.s. Treasury bonds. The u.s has a 5+
trillion debt. Brk has zero debt and 7.12 billlion in cash
reserves-growing rapidly. If the brk.a or brk.b market price
remains the same, or falls, buy some more shares. This
current time provides an excellent buying opportunity
that we may not see again for a year and
this security is my number one choice for an
individual, for a family trust, for reserves of a corporate
entity - either a profit or non-profit organization. For
additional reference - your library will have a copy of "the
warren buffett way; investment strategies of the world's
greatest investor" by robert g. Hagstrm, jr. Also review
the birkshirehathaway.com home page and the
chairman's letter to stockholders in the current and back
issues of all annual reports. This will give you an
excelent introduction into the mind of a straight talking
estremely honest man who shares his philosophy and his
investment approach with you.
all the best of
if i can be of any further assistance, please do not
hesitate to reach paul at falkland investments. E-mail: