Let's not forget that Buffet filled the truck with homebuilder stocks several months ago. He was early on that deal, but he can afford to wait. I suppose that he can afford to wait for the financial stocks to pull up, too.
His valuation on Bank of America (BAC) and USG is great. I think he owns Mohawk Carpets (MHK). These are battered stocks, not bad businesses due to real estate downturns. Afford to wait for him is like 2-3 years. Meanwhile he is writing calls and collecting premiums and possibly doing stock repair strategies so his profits increase. (Stock repair strategies can enhance your stock profits as well)
bikshire hataway sucks. way overrated. So is buffet. All if it sucks. Just buy some Ma and RIMM and make money. So easy werd iIhave no idea why people still pay attentiopn to buffet and his picks. Buffet is completely overrated. He can't pick shit. He doesn't know jack about the market or stocks. He is such a flooz he missed out on EXXON and many other great large cap stocks.
I think you are right. Why do these people not buy GOOG, AAPL, RIMM, PCU, DO, RIG, AMZN and make thousand times more than go after those skanky companies with terrible charts just because the P/E is low and ROE is 20% or greater? It takes years before these downtrodden stocks become profitable. They make 3 to 5 points and exit. I mean what is this? Why miss on these great moves in the above mentioned stocks, these are well run companies who deliver large multiples of gains shortly. Those skanky companies also have a tendency to file bankruptcies quick and disappear from the landscape. I think Warren Buffet likes cheap hookers too.
Warren been very good for shareholders over time but let me tell everyone something and listen cause me genius. Warren make money for years BUT now people think he like god. When people get feeling that everything he do will make money like he god, that is the time to run... I wish him the best but I would not be eager to do what he do any longer. you see, nobody god. me genius but no god. people think warren now god.. that is beginning of end me tell you
Actually, I think those are all good choices in this market for investors. What he's doing is typical industry shifting of his money. Financials have been beat down in the bull market top. That's not unusual and is typical industry action. Now with interest rates beginning to fall, growth will stall for many many companies. Debt will be difficult to come by. Investors will be looking for solid companies with high dividends. BAC is a good example of this. And then if we go into an economic downturn, financials will be one of the first industries to rebound as interest rates will be low and debt will be easier to lend. Now the key is not to just buy any old financial. You need solid companies. As for the other picks like JJ and Nike, well again, those are non-cyclical commodity industries. Again, a solid place to put money in an economic downturn. Now that's investing and not trading. So you have to weigh your own personal goals.
You do realize that all those companies rely on a strong economy to flourish don't you? GOOG's entire business model is built upon advertising dollars. If there is very little growth opportunities in businesses and we have an economic downturn, there will be no growth there and those stocks will tumble uncontrollably. Again, if you are an investor, your future growth in the stock is based on future growth potential in the company. You also need to factor in the macroeconomy as well. If the economy suffers, technology companies are the LAST place you want to be until the dust settles.
Monish Pabrai (another value investor) believes BRK is trading at a discount of 40-50% compared to its intrinsic value. I believe he bought last year for his hedge fund and added in 2007.