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Berkshire Hathaway Inc. Message Board

  • baller1515 baller1515 Mar 5, 2008 10:16 PM Flag

    Buy BRK-B tomorrow?

    I want to be a "Newbie" but scared to pay so much for 1 share of BRK_B, but I will hate myself 10 years later if BRK-B has doubled or tripled!!... So please advice. I'm 29 yrs of age and have about another 25 to 30 yrs before retirement, so I will definitely be in it for long term. Since I dont have a lot in retirement at the moment, I would hate to use a huge chunk of my savings and possibly lose it.

    Also, does anyone really think BRK-B will reach the $5,500 mark this year?

    Bottom Line...BUY BRK-B Tomorrow?, End of This Week (Friday)?,or wait it out a little bit longer for possible DIP?

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    • short answer - Yes, put in a market order to buy a share now.

      long answer - You definitely should invest in something. There's no such thing as a safe investment. In the past couple of years I bought some stock in a few banks because I didn't think a bank could go broke. Several of the banks I invested in are pretty much broke now (oops). With BRKB you are letting wise men like Warren Buffett pick the stocks and timing for you. If you can find someone better let me know. As for timing, it could go down. I have a limit order to buy at $2200/share but I don't know if it will go through or not. Predicting the future isn't something I've ever been good at.

      • 1 Reply to water_skipper
      • yes, it may go to 2500 in April, but will go to 5500 by year end. It went to 2500 and then to 3500, now again the same move. So you can do the same as traders are doing. but always be in the stock as it may go up 500 in a day on any good news. Did you not see recently it went up 400 in a day go check it if you dont believe me.

    • BRK-B is definately an overpriced pig,there are many better priced stocks that are less risk than this one,,most smart money is shorting this one as the dow is poised to drop big when miserable earnings come out on stocks in a couple weeks

    • BRKB will surpass 3900 EOY, easy.

    • Buy a low cost index fund. Berkshires past performance will not be replicated.

      Disclosure: Index and Berkshire shareholder.

    • I would watch the market closely. Review KO, BRKB, BRKA, JNJ, USG, BNI, etc. Look at prior charts and see if you can find a correlation to those stocks, the DJI, etc. I have not yet done so, but, am interested in the other drops below $4400, what were the other market indices doing? I do know one big drop was due to Rupert Murdoch (possibly misspelled) and some b.s. he wrote about A and B being overvalued.

      I did have a buy in at $4400, I'm now looking to $4100. Don't think it will get there, but, just have a hunch that this market is so horrid and there is no reason I shouldn't try to get close to the $3600 x 20 shares I'm in at currently.

      good luck and welcome. This is a very nice board and there are some very smart people. They will give you VERY GOOD INFORMATION!

    • Nothing is garanteed in the world of finance. Even governments can be bankrupt. BRK is as safe as a common stock as you can get but consider this:
      in 10 years, Warren Buffett and Charle Munger will probably be dead. No telling what will happen to BRK stock.
      If it doubles in 10 years, it will have been an average investment, since it will have appreciated about 7.2% per year. There are corporate bonds now yielding over 10%.
      Good luck with your decision.

    • bought in August 04 at $2814 - 58% over 3.5 yrs

    • Look at his past performance 20% return and beat all markets. Buy what you can afford for long term at your age. I bought for my grand children and will buy more at this pull back.

      Good luck

    • Buy it. Put it away and never sell it. Put out a registry for your friends and family to contribute any gifts for you in cash toward purchasing shares of BRK. BRK is rarely overpriced because most investors do not have a truly owner mentality and a truly long term view on investments.

      BRK is fundamentally a well diversified mutual fund with the best invesment manager alive that runs this fund for you for free. When he dies, the collection of business will continue to make profit and you would be a part owner of a wonderfull business.

    • I bought a few weeks ago at $4625 + 10 commission. I'd like it to be higher, but I'm not worried because I intended to hold it long term. This recovery will be a while in coming- you can buy now or later and just forget about it for your 10 years or other time horizon.

      Sharebuilder (ING Direct) will let you buy partial shares in the B class on a pre-scheduled monthly plan at $4 per buy. So you could average out the purchase of 1 share over a time interval.

      Share price- just think of it as a 100sh block at $45 each. Not much difference psychologically.

      Good luck out there

      • 2 Replies to penguin_can_waltz
      • Penguin: Respectfully, I disagree. While Sharebuilder may appear like a good idea, I think it is a complete rip-off. If one were to buy 1 BRK-B share in $45 monthly increments, it would mean about $400 in commissions. That is almost 9% commission rate. If you consider the commision as a proxy for expense ratio of ownership, then this is worse than any mutual fund I ever heard of.

        If the money is tight and not enough for 1 brk-b share, I would rather invest in a mutual fund with a low minimum investment. Most banks out there offer something like that. While no fund out there comes close (in my opinion) to BRK, paying Sharebuilder kinds of commission seems irrational to me.

        Notably, if there is no $4500 for BRK share, I suspect there are also no other fundamental financial milestones (emergency fund, disability insurance, etc.). Choosing to invest in BRK, or in any financial instrument for that matter, is more than just stock market speculation, it should be a part of an integrated and comprehensive financial plan.

        I highly recommend anyone considering buying or selling any stock, including BRK, to consult with an investment advisor. There are plenty of fee-only (not commission) honest and worthy advisors out there who are true investment management professionals and who will give an honest, unbiased and personalized advice based on your individual circumstances for under $500. Use them if you do not feel comfortable doing this yourself.

      • Yep, $4 for auto- investing or u could pay 10 bux for a real time trade at Sharebuilder. Later, davdddd

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