it was at 30 though what about their dividend Altho risky now People still flock to it That gives any value to the stock price? What you think they r part if the div aristocrats i believe
Was posted originally in 2009 already. Strange that there is a contradiction between the posting just above from @Nobert where Buffett seems to get richer and richer while Berkshire goes worse and worse. Added the excel with the calculations from the above article.
We will see where this goes. Read somewhere: Berkshire Hathaway, the investment vehicle of US super investor Warren Buffett, suffered a record loss of EUR 45 billion in the past quarter.
Media confuses loss, with temporary decreased in value. (lousy words, works well on general audiences tho) Those companies, although not public anymore, (yet if they were), would probably have the beta of 1.0, (it was a guess, this is what yahoo shows - beta 0.88) & as the BRK grows, it becomes more and more as the index itself, thus basically, it's impossible to outperform the market as it used to do, while in lesser size. He mentions multiple times - ,,If we with Charlie, had, 1 million, we would be beating the hell of the market''. As if one would be trying , to lift himself up, above the ground.
You think, eventually (one year/few years down the line), it will become a realized loss, with that kind of a cash flow ?
I dont think or speculate but if one is down its a loss, if they hold on and recoup, sure it erases but same as if they do or die another trade, no such thing as a paper loss other wise whats a margin call for ? Cashflow analysis this n that sure, but dont forget in between point a and z is the person m/trader and a position can be liquidated prior to the “temporary decrease in value” and a position becomes a “permenant loss” this is assuming we calculating based on it “going back up/increase in value” Buffett or not or any one No one is exempt from losses in matter fact the bigger you are the worse because u lose your freedom to get in and out as you please
Berkshire sold his airlines so it is a final loss, not a temporary decrease. Most stocks that Berkshire holds are LT investments. All these stocks are valued end of the year at the actual marketprice when the balance of the year is calculated. The size of the cash flow has no impact on whether something is a loss or not. If the value of the sales price is lower than the value in the books it is a loss. Even if there is a positive cashflow of billions.
Im not sure, that margin call is a good example, when talking about Warren. Maybe about Cramer on live tv, but not him. That was a-very-simple-question that i asked : My bet - no. *********************************************************************** We are wandering into those waters, where people disagree over the topics like ,,is trading a gambling'' , ,,can you teach trading''. The important thing, more important than being right, is to recognize that, prior it begins. I see it coming, - im outa here