Anyone see this article on WSJ.com?
Here's a tidbit:
Legendary investor Warren Buffett can't escape Wall Street's fascination with offering easier access to Berkshire Hathaway Inc.'s (BRKA, BRKB) stock.
In the next several weeks, investors will be able to buy a structured debt security from Wachovia Corp. (WB) that is tied to the fortunes of Berkshire Hathaway's Class B-share price - for $15 a pop, or less than 1% of the famed Omaha holding company's standard stock price, which has been hovering in the $2,900 range lately.
Thanks man,I just skimmed it. And so I ask,IF a guy doesn't have 3k to buy a B share does he figure to understand THAT f--kn filing? Are these
"As an aside, if someone offered you the opportunity to earn a fixed rate of return, payable monthly or quarterly on all of your money for an extended period of time (say 10 years or), what is the lowest rate of return that you would accept?"
>>>as the "Retire Early" websites offer some calculation on the S+P500 (...."riskfree cashing in about looong years certain percentages"...)I would be happy to get out 3,3% once a year....adjusted by the resp.last years inflation rate.
According to them capital then should last more than 50 years!
Not that anyone on wall street would give a
The fact is, both his "trading stocks" and BRK are both publicly held companies, both governed by exactly the same laws, rules and procedures. To a point, I can see where he would want to reduce certain expectations if the stock were trading at too high of a price (as compared to his opinion of IV); however, when the stock has been priced cheap for an extended period of time, I agree with you that there is no reason to continue to "manage" the price lower and you are also probably right that this is a reason why there is so little public interest in buying BRK.
Two points - While BRK has the same laws it is not the same as a "trading" stock - witht he "high" share price and WEB's management style it doesn't attract folks (at least this decade) in a trading mode. It was a "hot" Stock in 96 when the Bs were issued - whetehr it willbe ahgain in WEB's lifetime is a fair question.
Your point about not much demand I think means the Wachovia offering will meet with limited success. Unlike in 96 - when it was 30K to "drink the kool-aid", you can do it now for 3K. I don't think that a lot of folks that want BRK can't get it now.
<<As an aside, if someone offered you the opportunity to earn a fixed rate of return, payable monthly or quarterly on all of your money for an extended period of time (say 10 years or), what is the lowest rate of return that you would accept? >>
We face this issue every day. With the 10 year @ 4.5 % I gotta pass and go with high quality div paying stocks which I hope will return 8-10 % or so a year over the next 10 years with little risk of a major loss of my bankroll. Sad to say my party SUCKS,they f--ked up almost everything they could,hence,the Dems have a shot in 08 which could put our tax rules @ risk which would hurt my favored space. IF the DEMS had 3 high school grads from Brooklyn on their team,it would already be over and out but they are even f--kn dumber than my party so its even money who f--ks up worse and blows it,in 08!
GO BRK,3200 or BUST!
We both know that the "8 year" argument is about the only time period that supports the thesis, and that the S&P 500 hasn't done much either in this same period. Nonetheless, WEB discourages folks that need, or may need access to their investment dollars from investing in his company. This is the reason why the investing public stays aways from BRK. Most folks want access to a portion of their investment dollars, periodically and without having to liquidate their positions. BRK does not offer this alternative.
As an aside, if someone offered you the opportunity to earn a fixed rate of return, payable monthly or quarterly on all of your money for an extended period of time (say 10 years or), what is the lowest rate of return that you would accept?
Mornin beach. The experts have been quoted for YEARS with respect to how CHEAP brk is,WHY are there more sellers than buyers,WHO are the sellers? What has this cheap stock done for its owners for the past 8 years,NO div while we wait? DEAD people whose kids are selling their inherited stock are keeping it down because watching paint dry,SUCKS,right? No one,not even Buffett can know what the stock is worth to every potential owner or holder. THAT isn't his mandate,this is a public f--kn company,he and his board have an obligation to make an honest attempt to provide reasonable TOTAL RETURNS in OUR f--kn lifetime. IF that isn't his intent,take it private or disclose that it's suitable for accredited investors ONLY!! AAAmen.
3200 or BUST!!