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Frequent Contributor

Re: BRK/B BERKSHIRE HATHAWAY INC


@ArtieNJ wrote:

Saw this on Fidelity page.

https://www.marketwatch.com/story/warren-buffetts-big-bet-on-airlines-could-have-lost-nearly-3-billi... 

 


So? 43% of BRK assets are invested in banks which are also down. BRK owns almost 10% each of WFC and BAC. BAC is down 20% in last 3 weeks, WFC is down 16%. Market cap of WFC has declined from 250B at end of 2019 to 160B today which is a loss of 9B to BRK.

 

w. 

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Contributor ○○

Re: BRK/B BERKSHIRE HATHAWAY INC

Besides its investments, BRK makes max cash flows from insurance business and as such it is highly correlated with insurance index.

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Frequent Contributor

Re: BRK/B BERKSHIRE HATHAWAY INC


@ArtieNJ wrote:

Saw this on Fidelity page.

https://www.marketwatch.com/story/warren-buffetts-big-bet-on-airlines-could-have-lost-nearly-3-billi... 

 


Well that makes me feel real good not to be rich. I will never lose three billion dollars in my lifetime.

Capital
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Contributor ○○

Re: BRK/B BERKSHIRE HATHAWAY INC

That 100+B available to invest will come in handy now.  There is (and will be) distress in certain corners of the market and I expect Buffett's investment committee to be active.  Transportation / liesure/ entertainment / energy are a few that come to my mind.

If not anything, they can scoop up fixed income issues or convertibles.   I am likely to add to my BRK holding. 

 

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Re: BRK/B BERKSHIRE HATHAWAY INC


@Anitya wrote:

That 100+B available to invest will come in handy now.  There is (and will be) distress in certain corners of the market and I expect Buffett's investment committee to be active.  Transportation / liesure/ entertainment / energy are a few that come to my mind.

If not anything, they can scoop up fixed income issues or convertibles.   I am likely to add to my BRK holding. 

 


Why would Buffett invest in loser sectors such as leisure, entertainment and energy? BRK has lost over 3B in the airlines it owns since the Covina virus hit the screens and will lose more. If Buffet wants to bet on the future FAANG stocks are on sale as is BA down 38% from its high of 1 year ago. 

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Explorer ○○○

Re: BRK/B BERKSHIRE HATHAWAY INC

I own BKK.b and value it for its lack of volatility and steady growth.

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Re: BRK/B BERKSHIRE HATHAWAY INC


@erryl wrote:

I own BKK.b and value it for its lack of volatility and steady growth.


So? UTG has better TR 

        BRKB. TR      UTG TR

YTD  -9.06 %        -2.95%

1 yr.  2.65             18.69

5 yr.  7.23             12.55

10 yr 9.47             14.50

15 yr. 8.62            12.09

I assume you meant BRKB, not BKKb

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Re: BRK/B BERKSHIRE HATHAWAY INC

It has not been a great year for BRK.B Hopefully it turns around. 

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Contributor ○

Re: BRK/B BERKSHIRE HATHAWAY INC

BRK/B and American Funds American Mutual (AMRMX) are my top 2 value investments. I will continue with them. They are both underperforming like all value.

My another fund PARWX (Parnassus Endeavor) is also value. It did quite good last year but lagging this year. So thinking if to keep or fold. It requires a lot of courage to keep value stuff. YTD -  value is lagging growth by like 20+ %.

 

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Frequent Contributor

Re: BRK/B BERKSHIRE HATHAWAY INC


@TJ wrote:

It has not been a great year for BRK.B Hopefully it turns around. 


BRK.B trails the "stupid" index SP500 for 1-3-5-10 years(chart).  Buffett finally and luckily bought Apple after decades of avoiding high tech.

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Re: BRK/B BERKSHIRE HATHAWAY INC

I am thinking of giving BRK/b  one more year. Wait for 1-2 quarters after covid vaccine comes out. For those replacing BRK/B, what are you buying instead?

(BRK/B, VWENX and POGRX have  been  dead investments for me this year.)

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Re: BRK/B BERKSHIRE HATHAWAY INC


@waffle wrote:

I am thinking of giving BRK/b  one more year. Wait for 1-2 quarters after covid vaccine comes out. For those replacing BRK/B, what are you buying instead?

(BRK/B, VWENX and POGRX have  been  dead investments for me this year.)


10 yr total return of brk/b is 10.31%. 15 yr TR 9.56%.

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Participant ○○

Re: BRK/B BERKSHIRE HATHAWAY INC

Over the past week, BRK.b is off 0.95% versus VOO, which is off 5.03%

Over the past month, BRK.b is up 4.85% versus VOO, which is up 1.58%.

Over the past 3 months, BRK.b is up 12.02% versus VOO, which is up 6.35%.

 

So, maybe Value has turned a corner with the latest correction and will outperform going forward.

Also, I'd have to realize significant long term gains if I were to sell.

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Frequent Contributor

Re: BRK/B BERKSHIRE HATHAWAY INC

This has come up repeatedly in various threads recently, but I'll repeat. I wouldn't own BRK because:

  1. It owns the companies of yesterday, not tomorrow.
  2. I wouldn't touch its insurance operations (separate and lengthy discussion).
  3. Buffett's investing success has been poor in recent years.
  4. When the Gates Foundation inherits the majority of BRK stock, they're going to sell it to fund their projects.

Some years ago, I did a calculation to value BRK as a kind of CEF that owned companies (subsidiaries as well as stock), and concluded that viewed this way it was trading at a premium. Maybe that doesn't apply anymore.

There are so many better "value" investments than BRK. The exchange-traded fund SCHD is an example.

I really cannot see buying BRK now.

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Re: BRK/B BERKSHIRE HATHAWAY INC


@chang wrote:

This has come up repeatedly in various threads recently, but I'll repeat. I wouldn't own BRK because:

  1. It owns the companies of yesterday, not tomorrow.
  2. I wouldn't touch its insurance operations (separate and lengthy discussion).
  3. Buffett's investing success has been poor in recent years.
  4. When the Gates Foundation inherits the majority of BRK stock, they're going to sell it to fund their projects.

Some years ago, I did a calculation to value BRK as a kind of CEF that owned companies (subsidiaries as well as stock), and concluded that viewed this way it was trading at a premium. Maybe that doesn't apply anymore.

There are so many better "value" investments than BRK. The exchange-traded fund SCHD is an example.

I really cannot see buying BRK now.


Never owned BRK because I could not understand how buying all these dysfunction companies and managing their disparate business would be make it an over performer. Reminded me of LTV, another conglomerate that blew up.
Turns out Buffett was using the dividends generated by all the companies BRK acquired to generate cash flow along with some writeoffs available to the insurance companies. While it worked 40 years BRK began to unwind when the big bets on IBM, GE, XOM , KHC and WFC turned to junk. Recent acquisitions Such as airlines lost billions. Only valuable asset in the stable is AAPL, 43% of market cap and 26% cash.

My theory is that after Buffett passes on the Gates foundation will break up BRK and turn it into a smaller ESG fund with the goal of saving the world..

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Re: BRK/B BERKSHIRE HATHAWAY INC


@Intruder wrote:

@waffle wrote:

I am thinking of giving BRK/b  one more year. Wait for 1-2 quarters after covid vaccine comes out. For those replacing BRK/B, what are you buying instead?


10 yr total return of brk/b is 10.31%.


 

10 yr total return of VTI ( Total Stock Market INDEX ) is 13.97%. Leaving 3.67%/year for ten years should illustrate how difficult it is to outperform the market. Is it possible that Buffett will outperform in the future? Sure, what you need to ask yourself is it probable?

Stay safe

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Re: BRK/B BERKSHIRE HATHAWAY INC


@Bentley wrote:

@Intruder wrote:

@waffle wrote:

I am thinking of giving BRK/b  one more year. Wait for 1-2 quarters after covid vaccine comes out. For those replacing BRK/B, what are you buying instead?


10 yr total return of brk/b is 10.31%.


 

10 yr total return of VTI ( Total Stock Market INDEX ) is 13.97%. Leaving 3.67%/year for ten years should illustrate how difficult it is to outperform the market. Is it possible that Buffett will outperform in the future? Sure, what you need to ask yourself is it probable?

Stay safe


10 yr total return of QQQ is 20.83%.

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Re: BRK/B BERKSHIRE HATHAWAY INC


@Intruder wrote:

@Bentley wrote:

@Intruder wrote:

10 yr total return of brk/b is 10.31%.


 

10 yr total return of VTI ( Total Stock Market INDEX ) is 13.97%. Leaving 3.67%/year for ten years should illustrate how difficult it is to outperform the market. Is it possible that Buffett will outperform in the future? Sure, what you need to ask yourself is it probable?

Stay safe


10 yr total return of QQQ is 20.83%.


 

 Ten years ago the sector of choice was energy and specifically MLPs so while QQQ returns may be informative they are less relevant than returns of the energy sector. It is easy using hindsight to pick winners

10 yr return of XLE is -1.65%

 10 YR return of the Alerian is -1.4%

 10 yr total return of VTI ( Total Stock Market INDEX ) is 13.97%

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Re: BRK/B BERKSHIRE HATHAWAY INC


@Bentley wrote:

@Intruder wrote:

@Bentley wrote:

@Intruder wrote:

10 yr total return of brk/b is 10.31%.


 

10 yr total return of VTI ( Total Stock Market INDEX ) is 13.97%. Leaving 3.67%/year for ten years should illustrate how difficult it is to outperform the market. Is it possible that Buffett will outperform in the future? Sure, what you need to ask yourself is it probable?

Stay safe


10 yr total return of QQQ is 20.83%.


 

 Ten years ago the sector of choice was energy and specifically MLPs so while QQQ returns may be informative they are less relevant than returns of the energy sector. It is easy using hindsight to pick winners

10 yr return of XLE is -1.65%

 10 YR return of the Alerian is -1.4%

 10 yr total return of VTI ( Total Stock Market INDEX ) is 13.97%


Whatever floats your boat.

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