Brat
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I have nice gains in that stock but notice that ratings have turned Bearish. I believe the stock will drop when Warren Buffett passes. Would you sell now?
Berkshire Hathaway
- Thread starter Brat
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nvestysly
Full time employment: Posting here.
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- Feb 19, 2007
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We're not selling right now but we also don't need the money at this point. We have other cash on hand for living for the foreseeable future. If you want/need the cash it might make sense to sell.
While we don't know how long Warren and Charlie will live I suspect you're correct in thinking the stock price will drop when one or both of them die. If the price goes down dramatically we will be buyers for sure - loading up pretty heavily if our cash permits.
This subject has been discussed on E-R as well as many other places on the web. While there may be a drop in price upon death, I think it will be short lived but who am I to say. My crystal ball always seems to be a bit out of focus!
While we don't know how long Warren and Charlie will live I suspect you're correct in thinking the stock price will drop when one or both of them die. If the price goes down dramatically we will be buyers for sure - loading up pretty heavily if our cash permits.
This subject has been discussed on E-R as well as many other places on the web. While there may be a drop in price upon death, I think it will be short lived but who am I to say. My crystal ball always seems to be a bit out of focus!
youbet
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
We're all entitled to a guess! I'm going to hold my modest position to be part of my estate planning. No CG's or div's means no taxes for me now. And junior will be able to use the NAV at my death as his cost basis.
Of course if BRKA significantly under-performs the broad market over the years ahead (and I'm hoping for a lot of years ahead!), then this strategy will turn out to have been a mistake. I have plenty of mistakes mixed into my widely diversified portfolio.
We're talking a low single digit percentage of my FIRE portfolio. My basis is approx $125, so selling would generate significant LTCG's.
Of course if BRKA significantly under-performs the broad market over the years ahead (and I'm hoping for a lot of years ahead!), then this strategy will turn out to have been a mistake. I have plenty of mistakes mixed into my widely diversified portfolio.
We're talking a low single digit percentage of my FIRE portfolio. My basis is approx $125, so selling would generate significant LTCG's.
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P/B is about 1.3, which I remember is the floor that Buffett signaled before he'd do buybacks?
His return on assets and ROE is in the single digits, so in terms of future performance it's probably not, not great either.
I know these are not superreliable, couldn't find a decent ROIC number out there, but it's probably roughly in line with the S&P 500 these days.
His return on assets and ROE is in the single digits, so in terms of future performance it's probably not, not great either.
I know these are not superreliable, couldn't find a decent ROIC number out there, but it's probably roughly in line with the S&P 500 these days.
Sunset
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Some folks say BRK is under priced, if the new turks took over and handed out a dividend, some people would like it even more.
I'm not selling right now, no real reason to do so, and I like the non-dividend aspect of it. Helps to control taxes.
I'm not selling right now, no real reason to do so, and I like the non-dividend aspect of it. Helps to control taxes.
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