BRKA / BRKB - A good time to buy?

Discussion in 'Stocks' started by Comptalk, Nov 18, 2006.

  1. I was thinking on putting down somewhere between 40k - 100k in one of the BRK stocks as an investment and just let it grow quarterly or annually. At an average return of around 14%, that is not bad. Normally in a stock, whether it be a Goog, NYX, CBOT, etc. I usually do not spend more than 5 or 10 percent of my portfolio on the stock. I am usually in a stock either for the ride, or until I hit my price point to get out. Sometimes it is a couple of weeks, sometimes, like HOC, it is a few months. I rarely take a loss. I am willing to stick with the stock until I feel it really is time to exit. On risky companies, like a Goog or Bidu, I just play the options. Anyway, what would be the best way to play a BRKA or BRKB investment long term (over six months to several years)?
     
  2. Here's an idea.

    Buy 50% Berkshire, another 50% in a position of high yield natural gas and oil canadian royalty trusts (15-20%), PGH, AAV, etc.

    The idea here is that Berkshire made out recently on capitalizing on high hurricane premiums. So next summer, if they get hit, at least your losses on BRK are completely if not exceedingly offset by gains in those royalty trusts. You'll get the yield either way, and definitely see principal appreciation if energy prices go higher.
     
  3. Brk is more like a mutual fund than a stock. Buy and hold.
     
  4. I prefer to buy mutual funds when my neighbors are complaining about how much money they are losing in their stock investments.

    Bigcharts.com shows the value of the Dow Jones Industrial Average near the high of the year. Do you really have to buy now?

    I might buy a mutual fund when sentiment is very pessimistic and sell when the general market averages are showing new one or two year high values.
     
  5. Hmm.. Really looking for a solid low risk place to put the money, but yields a fair return. 5% is not that great for savings. Something I can place it there an not really worry about it. The only problem I see is Buffett retiring. He's 76 years old. How much longer can he still run the company? Will his successor follow the same principles as Buffett? Will the street accept the new figurehead?