ValueBuff Posted April 16, 2009 Share Posted April 16, 2009 Would people put a limit on how much FFH they own as a % of overall holdings? if so, what are you comfortable with? thanks! Link to comment Share on other sites More sharing options...
UhuruPeak Posted April 16, 2009 Share Posted April 16, 2009 FFH as a % to what? "general holdings", "investable assets", "net worth", non-401(k) investments.... Depending on what you count, FFH is probably between 30% and 80% for me (and I am way too lazy to actually calculate); it will go higher if BRK does well before the summer as I sell it and reinvest at least part in FFH. I basically view Fairfax and more risky short term but ulimately more profitable than my "same as cash" Berkshire. PS: No, I am not the ultimate nut in here, some do over 100% of investable assets through leverage :) Link to comment Share on other sites More sharing options...
Viking Posted April 16, 2009 Share Posted April 16, 2009 My weightings have varied from 90% to 0%. When the stock fell to $220 18 months ago and it was positioned so well with its CDS and long US treasury positions I backed up the truck and moved to 90%. I went to a similar weighting a couple of years ago when it fell to just over $100. I also reduced my position to 0% each time after purchase the stock went up significantly (as fears proved false or investment results smoked). I have never planned to go so heavy. And I got VERY lucky in that the bottoms were temporary and the stock made very significant moves upwards shortly thereafter. My net worth is now large enough that I do not want to take on the additional risk of concentrating on one company. Currently I have about 12% in FFH (of my investable assets) with my avg purchase being about CAN$285 (I was at 0% at the start of the year). On a go forward basis I doubt that FFH will trade as cheaply as it has in the past. I will be happy to buy when it falls below 0.8 x BV but will limit my exposure (perhaps 25%). I will also continue to lighten up as the stock appreciates... I like the company alot and feel it will perform quite well looking out 3 to 5 years. And the results will be lumpy. I will get more excited about FFH once the insurance market begins to harden... Link to comment Share on other sites More sharing options...
UhuruPeak Posted April 16, 2009 Share Posted April 16, 2009 jeez Viking, you've been smoking good! While I did a couple of round trips as well, I didn't do anywhere near as well as you seem to have (or uccmal/ericopoly/others have done with the leaps). I should really go back to looking at the Joe/Jane 6pack investors who lose their shirt in the market to make myself feel better in comparison ;D Link to comment Share on other sites More sharing options...
Viking Posted April 16, 2009 Share Posted April 16, 2009 Uruhu, I should point out that FFH gains over the years have covered up a number of smaller losses (although my long return is about 18%). Also, with FFH, I never went from zero to 90% on one purchase. I always started buying when the stock looked cheap and as it kept going lower I always bought more. And when it got insanely cheap (i.e. $100 a couple of years ago) I went pretty much all in. If FFH went under at the same time the stock price was cratering I would have been pretty much cleaned out. Also, during the short periods when I was 'all in' it was very difficult for me to keep things together mentally. High risk... high reward. Gambling? Stupid? I do not have the answers. Bottom line, I have learned that I do have a predisposition to do something that is quite dangerous (go overweight). I am trying to get better at getting a little more diversified but not too much (as I believe concentrated portfolios are the best way to go). And despite having a pretty good long term track record I still am not sure if it is skill or luck! I just try and keep reading and learning and getting a little better every year... Link to comment Share on other sites More sharing options...
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