Buffett/Berkshire - general news

[gfp]

So far the high today put a $989.75 Billion market cap on Berkshire.  Will we hit the extra digit club this week?  How many covered calls are out there getting violated?

 

[John Hjorth]

11 minutes ago, gfp said:

So far the high today put a $989.75 Billion market cap on Berkshire.  Will we hit the extra digit club this week?  How many covered calls are out there getting violated?

 

Yes, It's actually mind provoking to think about the 1 trillion USD market Cap value af Berkshire. The issue at hand and of importance to us as shareholders, is for management - at all times - to do it's very best.

[CassiusKing1]

On 8/26/2024 at 11:19 AM, gfp said:

So far the high today put a $989.75 Billion market cap on Berkshire.  Will we hit the extra digit club this week?  How many covered calls are out there getting violated?

 

And here we go again today!  Sold 1/3 of my BRK position.  Thinking about selling more.

[sleepydragon]

It’s interesting Buffett’s teacher Graham, who is regarded the GOAT of all these special situations/value investing trades, made the most money from one long term holding.
 

[73 Reds]

12 minutes ago, sleepydragon said:

It’s interesting Buffett’s teacher Graham, who is regarded the GOAT of all these special situations/value investing trades, made the most money from one long term holding.
 

Buffett has said that a few key long lasting decisions in life make all the difference.  Amen to that.

[Whensthepaintdry?]

1 hour ago, CassiusKing1 said:

Thinking about selling more.

Do you think it has gotten way too ahead of the valuation or just see better opportunities elsewhere? 

[Munger_Disciple]

34 minutes ago, Whensthepaintdry? said:

Do you think it has gotten way too ahead of the valuation or just see better opportunities elsewhere? 

 

Berkshire had a similar melt up during 2007 before the proverbial GFC s**t hit the fan. Rightly or wrongly, Berkshire is seen as a safe haven during potential troubles. Perhaps markets are telling us that we are reaching the top of the MAG 7 froth? If there is a major market correction, I can't imagine Berkshire not being part of it though. 

[Whensthepaintdry?]

I can definitely see that happening. I agree it has been running hot. It doesn’t take heroic assumptions or multiples on operating earnings to reach today’s value though. I am not the biggest user of options, but I have been feeling the urge to sell covered calls for a while now. 

[Munger_Disciple]

38 minutes ago, Whensthepaintdry? said:

I can definitely see that happening. I agree it has been running hot. It doesn’t take heroic assumptions or multiples on operating earnings to reach today’s value though. I am not the biggest user of options, but I have been feeling the urge to sell covered calls for a while now. 

 

Just be aware that Berkshire fully participated in the market downdraft in 2008-09, so it's not quite an insurance policy against corrections (pun intended ).

Edited August 27, 2024 by Munger_Disciple

[Kuhndan]

I sold out of the money calls several months ago thinking it wouldn’t hit $460…. and here we are. 

[73 Reds]

4 minutes ago, Kuhndan said:

I sold out of the money calls several months ago thinking it wouldn’t hit $460…. and here we are. 

I was always fascinated with options.  I use them in real estate quite a lot but when stocks first became optionable this became somewhat of an obsession.  The book "Options as a Strategic Investment" (Larry McMillan) was an incredible read for all the possibilities it presented.  Every now and then, a trade would arise that made no sense, almost felt like a can't lose - but often it did.  Still, at one time, I probably spent the better part of six months trying many of the different strategies.  Later, around the year 2000 I recall reading about one trade involving Cisco Systems where an ATM covered call for (I believe) less than a year sold for the same premium as the stock price.  By then a company like CSCO was not in my wheelhouse and I didn't do it.  But decades later, the idea of covered calls and short puts makes a lot of sense in the right situations.  The issue with covered calls on Berkshire is there is entirely no rhyme or reason for the way the stock trades (other than the proverbial more buyers than sellers, and visa versa).  If there was ever an extended period of time when one might have reasoned that the stock price would trade down it was after the release of the annual report earlier this year.  Yet here we are - go figure.  

[sleepydragon]

imo, for retail investors, there are only two types of options trade that gives retail investors a unique edge . Sell puts or buy calls. 

[UK]

2 hours ago, Munger_Disciple said:

 

Berkshire had a similar melt up during 2007 before the proverbial GFC s**t hit the fan. Rightly or wrongly, Berkshire is seen as a safe haven during potential troubles. Perhaps markets are telling us that we are reaching the top of the MAG 7 froth? If there is a major market correction, I can't imagine Berkshire not being part of it though. 

 

As WMT IIRC:)?

 

https://www.barrons.com/articles/warren-buffett-berkshire-hathaway-stock-price-market-cap-832393c6

[CassiusKing1]

18 hours ago, Whensthepaintdry? said:

Do you think it has gotten way too ahead of the valuation or just see better opportunities elsewhere? 

I think the recent stock price movement has gotten misaligned with the underlying business.  I've traded BRK many times in the past and I think I'll be able to buy it back lower than $460 in the next six months.

BRK will always be a holding in my portfolio.  It was 70% of my portfolio prior to this sale due to overall market valuation and no better opportunities.

[Hektor]

https://finance.yahoo.com/news/warren-buffetts-berkshire-hathaway-tops-135118684.html

 

Warren Buffett's Berkshire Hathaway tops $1 trillion market value

 

The market value of Berkshire Hathaway surpassed $1 trillion on Wednesday, reflecting investor confidence in the conglomerate that Warren Buffett built over nearly six decades into what many consider a proxy for the American economy.

 

Berkshire joined six other companies, mainly from the technology sector, above $1 trillion: Apple, Nvidia, Microsoft, Google parent Alphabet, Amazon.com and Facebook parent Meta Platforms.

[John Hjorth]

6 hours ago, Hektor said:

https://finance.yahoo.com/news/warren-buffetts-berkshire-hathaway-tops-135118684.html

 

Warren Buffett's Berkshire Hathaway tops $1 trillion market value

 

The market value of Berkshire Hathaway surpassed $1 trillion on Wednesday, reflecting investor confidence in the conglomerate that Warren Buffett built over nearly six decades into what many consider a proxy for the American economy.

 

Berkshire joined six other companies, mainly from the technology sector, above $1 trillion: Apple, Nvidia, Microsoft, Google parent Alphabet, Amazon.com and Facebook parent Meta Platforms.

 

Yeah, and I recall quite a few - likely quite young  - CoBF members some years back here on CoBF - bashing both Buffett and Berkshire for being a louzy investor and a louzy investment, respectively.

 

The really funny point about it is that none of chose posters do not post about it any more here on CoBF. [Look at all that cash, the man is old, and he has for sure lost it, it's 'old economy', now see what he has been buying of listed companies, the price paid in this acquisition is crazy, etc., etc.], in fact they don't post any more - at all, that is. 

 

And despite all that, it has, on average and long term, worked out really well.

Edited August 28, 2024 by John Hjorth
spelling and language

[cubsfan]

^^ John - history repeats itself

[nwoodman]

37 minutes ago, Hektor said:

https://finance.yahoo.com/news/warren-buffetts-berkshire-hathaway-tops-135118684.html

 

Warren Buffett's Berkshire Hathaway tops $1 trillion market value

 

The market value of Berkshire Hathaway surpassed $1 trillion on Wednesday, reflecting investor confidence in the conglomerate that Warren Buffett built over nearly six decades into what many consider a proxy for the American economy.

 

Berkshire joined six other companies, mainly from the technology sector, above $1 trillion: Apple, Nvidia, Microsoft, Google parent Alphabet, Amazon.com and Facebook parent Meta Platforms.

It probably means nothing to him, but I am glad we are both alive to see it.

[nwoodman]

24 minutes ago, John Hjorth said:

 

Yeah, and I recall quite a few - likely quite young  - CoBF members some years back here on CoBF - bashing both Buffett and Berkshire for being a louzy investor and a louzy investment, respectively.

 

The really funny point about it is that none of chose posters do not post about it any more here on CoBF. [Look at all that cash, the man is old, and he has for sure lost it, it's 'old economy', now see what he has been buying of listed companies, the price paid in this acquisition is crazy, etc., etc.], in fact they don't post any more - at all, that is. 

 

And despite all that, it has on average and long term, worked out really well.

Probably best not be a knob about it and just enjoy the fact that he got to see it. Just saying.

[John Hjorth]

23 minutes ago, cubsfan said:

^^ John - history repeats itself

 

Mike [ @cubsfan ],

 

If you're alluding to what will happen to and about the market value of this basket of 'magnificent [now] eight', it will for sure be exciting to follow going forward, I have no idea about what will happen.

Edited August 28, 2024 by John Hjorth
language and spelling

[73 Reds]

9 minutes ago, nwoodman said:

It probably means nothing to him, but I am glad we are both alive to see it.

Curious, hypothetically speaking, if a foreign entity (Saudi Aramco?) were to acquire a 5% interest in Berkshire, would it be subject to the reporting requirements of 13D?

[nwoodman]

1 minute ago, 73 Reds said:

Curious, hypothetically speaking, if a foreign entity (Saudi Aramco?) were to acquire a 5% interest in Berkshire, would it be subject to the reporting requirements of 13D?

Way beyond my pay grade but this run, while reminiscent of 2007, lacks some of the more obvious macro markers.  I do appreciate your thoughtfulness.

[Blugolds]

Honestly as someone with the majority of my NW in BRK it does nothing for me really, if anything its kind of a bummer as selfishly I would be much happier if BRK was to get trounced while the cash pool in Omaha is so deep and Buffett let the buyback cannon fire for effect! I do expect an eventual retrace but it's fun to watch. 

 

A headline that said, "Buffett record buybacks last quarter" would make me much happier than BRK $1T. 

Edited August 28, 2024 by Blugolds

[nwoodman]

13 minutes ago, Blugolds said:

Honestly as someone with the majority of my NW in BRK it does nothing for me really, if anything its kind of a bummer as selfishly I would be much happier if BRK was to get trounced while the cash pool in Omaha is so deep and Buffett let the buyback cannon fire for effect! I do expect an eventual retrace but it's fun to watch. 

 

A headline that said, "Buffett record buybacks last quarter" would make me much happier than BRK $1T. 

Don’t disagree, but he likes round numbers and it is a decent milestone. Deserved of a second cherry coke and then back to business

[throw123]

16 minutes ago, Blugolds said:

Honestly as someone with the majority of my NW in BRK it does nothing for me really, if anything its kind of a bummer as selfishly I would be much happier if BRK was to get trounced while the cash pool in Omaha is so deep and Buffett let the buyback cannon fire for effect! I do expect an eventual retrace but it's fun to watch. 

 

A headline that said, "Buffett record buybacks last quarter" would make me much happier than BRK $1T. 

agree, its bittersweet