There was a guy on this board who bought Brk on
margin at 84k.... guess he got really worried when Brk
dropped below 60k. Paying interest is easy... meeting a
margin call may put you out on the sidelines...
remember a few thousand posts ago somebody screamed "Brk
will crash!".... I opened he message and it read
"because I just bought some!"
Murphy's a real
asshole, and he'll dick you the minute you drop the soap!
Yes, I do. The day he starts calling everyone
frauds (the "real-owners" is subtle way to do it, but
Congo doesn't have the where with all to be subtle), is
the day he shows he was inbred from the same farm
animals Congo was.
<<True owners that I know of personally
delight at learning about my analysis. >> I am a
true owner and held shares in this company many years
before you. I do not take delight in learning your
analysis because you don't have a clue about Berkshire or
Buffett. All true owners recognize that.
<<The only reason someone would disagree or show no
interest at all in the future prospect of BERK is that he
currently is holding zero shares in BERK>> The only
reason someone would disagree with you is because he
holds zero shares in BRK? From reading your posts, I
guarantee you that Warren Buffett would disagree with much
of what you say and the last time I checked he owned
a few shares.
I agree with "ignoramus" saying " What I do not
like about your postings is that you make scads of
assumptions, but never
articulate them and never explain
to us where they come from. Thinking in this way is
bound to produce errors."....
and also, mislead
a lot of people who aren't 'finance
mostly you're pretty good, but a little too windy,
without clarifying all your reasons, assumptions and
calculations (or basis) for arriving at your numbers like P/E,
future stock price etc. Half knowledge (given or taken)
I hope everyone keeps this in
mind, there are a lot of financially astute people on
this board, so lets pool our minds, and make rational
predictions and reccomendations..
Given people's perennial and misguided optimism,
I do not regard any job or a business as
"rock-solid". If you do, you may be mistaken. Borrowing money
to buy securities is risky in any form, although the
margin form of borrowing may be riskier, because you
have less leeway as to when to sell.
end, you will be required to repay the loan, and I
have no assurance that BRK will indeed
I hold BRK because I think that its risk/return is
better than anything I could achieve by myself. I do not
think of it as a riskless security. I own it because I
would rather let Buffett do capital allocation for me
than do it by myself.
What I do not like about
your postings is that you make scads of assumptions,
but never articulate them and never explain to us
where they come from. Thinking in this way is bound to
True owners that I know of personally delight at
learning about my analysis. The only reason someone would
disagree or show no interest at all in the future prospect
of BERK is that he currently is holding zero shares
in BERK, and the reason he is so obnoxious in his
words is that he has missed the express boat to Omaha,
the Cradle of Economics.
I feel sorry for
these people, but their presence on this board (another
sign that I am a very optimistic person who always
looks at the bright side) is vitally
They remind us of middle class people who have missed
the boat, especially those who are not happy with
their jobs, and try to get some recretional value out
of verbally attacking those from "the other side of
the tracks" (To Kill the Mocking Bird).
help save these people and help cut down on the number
of mentally ill and crimes, we truly need BERK to do
more, faster. Opening up more NFM will be a good start.
Going into direct-selling retail life insurance is
For those true owners of BERK out there: whenever you
read postings by an obvious non-owner, please refresh
your mind of my proposals for BERK to do more and
Substance over form, there are the three words
that I told people (in my own opinion) represents the
three best words to describe Warren's teachings and
"Debt" may sounds like something great or bad depending
on who you are. But a rational investor would take
away the "form" (debt) and try to decipher what is
When Warren mentioned about debt is like driving with
a dagger pointing to your heart, you are bound to
hit some pothhole, what he means is the traditional
way of obtaining debt. For eg: the majority of Asian
companies which took in loans in US dollars (to take
advantage of a supposedly stable exchange rates and the
huge differentials between Asian interest rates and
those found in the World's HQ of Capitalism) during the
last several years, thinking that one, the exchange
rate would continued to be propped up by their central
banks, two, the robust economy (which has been growing
at near double digit rate for the past decade) would
In other words, traditional
debts incur paying the interests with hoped-for
corporate (or share price appreciation, as in margin plays)
earnings. If that hope doesn't come true, the dagger will
hit right into the heart of those undertaking the
risky ventures (or, more accurately, the bankers, the
owners of those public corporations -- including me for
a at least a few months before I sold out at a loss
and converted to BERK, but the loss is very small
when compared to my whole portfolio, thanks to the
Great Man from Omaha, millions of thanks --, and
finanlly, the taxpayers).
If you have a rock solid
job or business (you define it yourself) which can
comfortably weather the coming global depression, and as long
as it is a ten year loan from your relatives, and
that you can comfortably make good on those monthly
interest-plus-part of principal payments, it is not at all like the
In conclusion, these non-traditional
debt doesn't rely on BERK appreciating.
of your own money. You have a choice of putting it
in the bank or buying BERK. You made the choice of
buying BERK. Think of it as you borrowing from yourself
and foregoing the low, low interest income every
If BERK drops in price, you actually lose out no
matter you are taking the money as loans from your
relative or from yourself!
Given the structure and
nature of the relatives debt, I don't think it is risky
at all given my various analysis on BERK's future
10-15 years' prospects.