saw that BRK broke below the 50K support level.
This was a benchmark day. The titantic is taking in
water. The Captain is pulling the general alarm. The
lifeboats are being lowered. The smarter passengers are
jumping on the lifeboats and paddling away. There will
not be enough lifeboats for everyone. It is sad. Some
believe this is a false alarm, and just roll over and go
back to sleep. Once those precious few lifeboats
paddle out to a safe distance, do you think anybody is
coming back to take up more passengers?
read the financial statements very carefully, eh?
Or perhaps the abuse of certain accounting policies
just doesn't bother you.
I've been panning them
for a year, and now even the company warns about
The smart money will start to
leave well before Jan 2001. Beware.
The hairy eyeball is much worse than the "drop
dead eyeball" or the "what planet are you from
eyeball"...especially if it is accompanied by the raised eyebrow ;-)
So with a combination of the hairy eyeball and the
raised eyebrow...I had to explain to my hubby why the
sell Cisco/buy Berkshire trade makes sense...and why
he continues to allow me discretionary control over
his account ;-)
I really don't worry about
rumors related to Berkshire, because Buffett's honesty,
integrity and ethics are unmatched in the corporate world.
If there is a "problem" in a certain part of the
operations, he will handle it appropriately with full
disclosure to shareholders. Berkshire is such a supertanker
that it would have to hit a monstrous iceberg to leave
a dent in the overall business.
Stovall said on CNN this morning, you just have to look
at the new lows list to see that insurance companies
don't have a friend in the world right now. Everyone,
especially Mr. Market, is giving them the hairy eyeball.
That's precisely when the best buying opportunities
appear. When Mr. Market is drunk with glee over a company
like Cisco, his eyeballs tend to be glassy...and
that's when you should sell.
" Don't know about you, but with Wall Street
raising their price targets on Cisco and talking about a
trillion dollar market cap...I'm feeling awfully queasy
about my Cisco position. I'm just letting the nonsense
run a wee bit longer, before I start cashing in some
Cisco profits. "
Trillion dollar market cap?
Cisco is a great company, and very well managed, but
it's possible to pay too much for anything.
I'm not selling my CSCO, but I'm trying decide
whether I'd rather put in a stop at about 110 or write a
covered call. I figure I've made a bundle on this baby; I
might as well either protect most of the profits or
squeeze an option premium out of it to help me if it
I have never in my life experienced a "hairy
eyeball". I have experienced the "drop dead eyball", the "I
pity your vast stupidity eyeball", and the "what plant
are you from" eyeball. But never the "hairy eyeball"
You really must tell me what one looks like :-)
Wall Street isn't just ignoring BRK, it is fleeing
BRK. The problem is that we don't really know why.
When you think it is something that we all have read
about (insurance industry, portfolio performance,
etc..) you find out that there have been rumors floating
around about derivative losses. These rumos were
apparently too well heeled to make it down to our plebeian
ears, but someone heard them and was concerned enoungh
to provoke WEB to comment on them. What other rumors
are circulating behind the scenes?
stupid, I agree. But if you are not aware of what the
rumors are, how can you defend from or analyse their
validity. What we need is someone close (really close) to
the situation to level with us about what is being
Now a long term investor should not care
about rumors and if you really believe in the stock,
you should be happy to have something as silly as a
rumor allow you a temporary buying opportunity. But a
lot of people here don't want any more buying
opportunities and should be given the scoop about what is being
said that is affecting their portfolios.
my humble two cents.