Well, now its easy to look at history and say a concentrated portfolio in BofA might not be the best approach to long term ERdom. But I wonder, how many ER have most of their funds in Berkshire Hathaway and feel bulletproof?
Well, now its easy to look at history and say a concentrated portfolio in BofA might not be the best approach to long term ERdom. But I wonder, how many ER have most of their funds in Berkshire Hathaway and feel bulletproof?
Well, now its easy to look at history and say a concentrated portfolio in BofA might not be the best approach to long term ERdom. But I wonder, how many ER have most of their funds in Berkshire Hathaway and feel bulletproof?
I don't own Berkshire Hathaway, but I did, I would feel perfectly ok today. BRK is not a single company stock.
Sam
I don't remember anyone here saying that they are in that position.
Ha
I don't remember anyone saying so either. Does that mean there aren't any?
Check out this thread from July 2007 and please give us a summary of your findings...
http://www.early-retirement.org/forums/f44/bank-of-america-29133.html#post543431
and this one from Oct 2007: http://www.early-retirement.org/forums/f44/bank-stocks-29784-2.html#post568417
Maybe I missed something. Someone, I think 2B, said no more than 10% in any one stock. If he followed this VaCollector would be here today. But others were supportive or noncommittal. I notice that I passed on making any post at all. My only investment in BAC in my entire life was for a few weeks fall of 2007. Am I ever glad!
Ha
Is anybody else feeling the urge to spend your cash reserves??
Crazy....maybe so.....or (just maybe) this could be one of those "once in a lifetime" opportunites that we've all heard about
.....more than several GREAT stocks at bargain basement pricing....especially those financials that everyone is running away from as fast as they possibly can!!
...
I'm so tempted to go ALL IN that it's scary!!
HELP!....go ahead....talk me out of it ....or into it....I'm all ears.....and I have an AM buy order ready for a few thousand more shares.....'cause this stuff CAN'T keep going down....UGH....but that's what I've been hearing since last October.....
...and others are simply nuts.I am telling you, some people got huge balls.
I think VACollector had reflected on the idea for quite a while and made a concious decision to take on the single stock risk because of his analysis and presumed stability of the dividend. He was really only additionally interested in hearing Brewer's advice who reinforced his decision by stating he'd be fine with BAC. As BAC fell in price VACollector was admant in holding his stock much the same way my sister was with her Comdisco stock.VACollector did ask for opinions, but sadly he was mainly asking for validation and obviously ignoring advices to the contrary. Above was his OP on a thread in "Stock Picking" and not "Fire and Money". The former may not be as widely read, as ERD50 pointed out.
That is one huge reason I believe he should be welcomed back with open arms.
I saw the earlier posts talking about concentration in BRK. Could ejman be remembering a post I made?
About 5-6 months ago, I made a "threat" to fire all my mutual fund managers - Dodge&Cox, Weitz, and Third Ave - and to give all those holdings to Buffet. I was upset that these value funds had a high content of financial stocks, hence went down harder than the broad market, and of course Berkshire.
Since then, I did sell some but not all of those mutual fund holdings for tax write-offs, and did buy BRK/B. At this point, I only have 4% in BRK/B, while I initially thought of going to 30%. Instead, I have used some of the money to buy some ETFs and other stocks. So far, so good.
The only time I had more than 10% in any stock was when I had my 401k with my megacorp. Even then, it was only 30% of portfolio. I know some friends who "put it all in" when this megacorp was near bankruptcy in the early 90s. They later RE'ed with a cool $1M+ 401k. Near $2M to be exact.
Yes, they "went all in" while there were lay-offs, and talks of the megacorp going belly up. I am telling you, some people got huge balls.
Because then he would go from being a passive-aggressive kumquat to an active aggressive one.
VACollector did ask for opinions, but sadly he was mainly asking for validation and obviously ignoring advices to the contrary. Above was his OP on a thread in "Stock Picking" and not "Fire and Money". The former may not be as widely read, as ERD50 pointed out.
...(well known as an off-to-the-side, seamy hotbed of contentious bickering that is not frequented by respectable members of this community.
Sam, I see the sarcasm, but I sent you a PM...So, a poster asks for advice, but because it is in the Stock Pickers forum (well known as an off-to-the-side, seamy hotbed of contentious bickering that is not frequented by respectable members of this community), the poster does not benefit from the full input of the group and possibly suffered a worse outcome as a result.
Mr. Lewis, testifying under oath before New York's attorney general in February, told prosecutors that he believed Messrs. Paulson and Bernanke were instructing him to keep silent about deepening financial difficulties at Merrill, the struggling brokerage giant. As part of his testimony, a transcript of which was reviewed by The Wall Street Journal, Mr. Lewis said the government wanted him to keep quiet while the two sides negotiated government funding to help BofA absorb Merrill and its huge losses.
Under normal circumstances, banks must alert their shareholders of any materially significant financial hits.
How could the government have threatened their jobs? Seems incredible, doesn't it? Ask former GM CEO Waggoner about how this works.The Wall Street Journal previously reported, in a page-one story on Feb. 5, that Mr. Lewis agreed to proceed with the Merrill merger only after Messrs. Paulson and Bernanke said that he and his board would lose their jobs if Bank of America backed out of the deal. Mr. Lewis's testimony with the New York attorney general's office corroborates that account.
So, I wonder how all those BofA shareholders feel? As VACollector heads back to the cubicle for a couple more years, hopefully it warms his heart to know that he didn't lose money on the stock simply because of the normal market processes. He lost money, at least in part, due to a government-directed information management policy which deliberately withheld information from him and others about an upcoming business deal. BofA couldn't back out of the deal, and they couldn't disclose to shareholders how rotten it was."Regulators are supposed to tell you to obey the law, not to disobey the law," said Jonathan R. Macey, deputy dean of Yale Law School. "If you're the CEO, your first obligation is not to your regulator, it's to your institution and shareholders."
Religion and government are both better off when they each stay in their lanes. It's the same with business and government.
Oh, and thanks for your contribution, VACollector. I hope you and the other shareholders are right now obtaining a very good lawyer.