berkshire is cheap - mpauls

[shalab]

In today's WSJ, there was a quote from one mpauls - is it the same one that posts here?

 

[Parsad]

Yes, that would be the same one.  Cheers!

[Liberty]

somebody always thinks brk is cheap. it's the most "appraised" stock out there.

 

Indeed, but sometimes they're right...

[ubuy2wron]

somebody always thinks brk is cheap. it's the most "appraised" stock out there.

Same statement is true for every stock that trades someone always thinks its undervalued or they would not buy it the sellers motives are myriad but the buyer ALWAYS thinks it is undervalued.

[biaggio]

somebody always thinks brk is cheap. it's the most "appraised" stock out there.

Same statement is true for every stock that trades someone always thinks its undervalued or they would not buy it the sellers motives are myriad but the buyer ALWAYS thinks it is undervalued.

 

yes I know what you mean.

 

But, how about the times an ETF or index fund has to buy or sell-I would think they would buy or sell indisciminate to price + value.

[rmitz]

Same statement is true for every stock that trades someone always thinks its undervalued or they would not buy it the sellers motives are myriad but the buyer ALWAYS thinks it is undervalued.

 

yes I know what you mean.

 

But, how about the times an ETF or index fund has to buy or sell-I would think they would buy or sell indisciminate to price + value.

 

Not to mention people getting carried away with momentum or emotions or trading charts...there are lots of people out there that don't ever consider what fundamental value might be.

 

 

[twacowfca]

Same statement is true for every stock that trades someone always thinks its undervalued or they would not buy it the sellers motives are myriad but the buyer ALWAYS thinks it is undervalued.

 

yes I know what you mean.

 

But, how about the times an ETF or index fund has to buy or sell-I would think they would buy or sell indisciminate to price + value.

 

Forced buying by an index fund, ETF or closet indexers plus other funds that are usually motivated to avoid tracking error vs their peers is a great trade. Seth Klarman has a small group that specializes in such trades associated with rebalancing of indexes.  We have a few trades on that will probably be exited with a market at close order today with the annual rebalancing of the Russell indexes which occurs after the market closes today.  :)

 

Not to mention people getting carried away with momentum or emotions or trading charts...there are lots of people out there that don't ever consider what fundamental value might be.

 

 

[gfp]

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