Berkshire Hathaway Loads Up On Financial Stocks

Discussion in 'Stocks' started by ASusilovic, Aug 16, 2007.

  1. Oh you mean your naked put writing strategy?? hahaha Yes, good luck with that. You're so much smarter than Buffet, Pabrai, Loeb and Lampert.
     
    #51     Aug 21, 2007
  2. I wish I hadn't been right :(
     
    #52     Aug 21, 2007
  3. I understand your reasoning but you're missing one important point. Buffet only buys into companies he can extrapolate (understand how their business will function) over at least the next 10 - 20 years.

    Poeple asked Buffet why - since they were best friends - he doesn't take a stake in Bill Gates' Microsoft. Buffet answered that yes, Gates is one of the smartest people he has ever known... but Buffet has no idea how Microsoft's business model will look like in 20 years.

    Same with AAPL. Will it be a music company, TV station? Hardware company? Laptop company? A little of everything? The fact is nobody knows.

    So even if there is a great opportunity, the risk of unknown (in Buffet's view) is too great for Buffets taste. Buffet loves companies that do the same thing today that they did 20 years ago: Insurance companies, Oil companies, rail roads, banks. There is a good chance they will do exactly the same thing 20 years from now.

    He's not in the business of hopping on board of every great train that goes up 200% every year. His business is avoiding risk and uncertainty and making "safe" bets (again, from his point of view, safety lies in the eye of the beholder).
     
    #53     Aug 21, 2007
  4. Yea that does make sense.

    BRK.a performnce is in line with the SPY on a five year basis which is somewhat unspactacular conidsering who is at the helm.
     
    #54     Aug 21, 2007

  5. For the moment it seems like I am outperforming all these wonderful legendary investors. I don't know why?
     
    #55     Aug 23, 2007
  6. That's what all naked put sellers do... until fate strikes...
     
    #56     Aug 23, 2007
  7. I'm also out performing the ol' oracle. Too bad I don't have the billions to do it with.
     
    #57     Aug 23, 2007
  8. You're dreaming of billions, Buffet made billions... started out with nothing, just like everyone else.
     
    #58     Aug 23, 2007
  9. It seems most relibale option players that I know and respect, have out performed WARREN BUFFET in 2007.

    Just look at the chart of BRK.A and ask yourself if you owned this turkey in 2007 what has this stock done for me? The answer is very simple.
     
    #59     Aug 23, 2007
  10. Here's the good news. It trades at >100k so it won't likely end up on your buy list anyways.
     
    #60     Aug 23, 2007