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It's Just Silly To Own Berkshire Hathaway Stock


Buffett_Groupie
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My grandfather bought a few shares of Berkshire back in the 1980s and, to my knowledge, didn't sell them. He went to the annual meeting a couple of times in the early '90s - I actually have a copy of the 1994 edition of Of Permanent Value signed by Buffett and Kilpatrick that was sent to me because he passed away.

 

I think it is very interesting to try and reverse engineer what investors in Berkshire back then were thinking. There aren't many companies out there that I would bet could match Berkshire's performance from then until today. Markel and Leucadia are probably the closest. I own shares of neither, but am very interested in both.

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A more reasonable argument would talk about how by buying Berkshire at current multiples of book and tangible book, you are, in part, buying KO, WFC, IBM, AXP, cash and short term fixed income at way above market levels

 

Of course the whole 0% cost of float, deferred tax liability never to be realized, and acquisition pipeline ( what other company can take out Heinz using less than a years FCF) thing negate a lot of the premium you pay for easily replicable exposures, but I think that is the best reason to not buy.

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That guy looked at 1yr correlation. 5yr chart shows that S&P 500 did way better than BRK did.

 

Useless article.

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The one comforting thing about value investing is it's actually good for people to write articles like this.  If there weren't people listening to cramer, timing the market, following the momentum, buying into the hyped investments, etc then value investing wouldn't work.  It's good for (other) people to be less than rational and long term when it comes to investing.

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