Berkshire - Long Term

give me some reasons not to invest in BRK

Papa Warren gonna drop any time now.

Pushing 90 still eating mcmuffins and drinking coke. Dude is a testament to the IIFYM lifestyle. Wonder what his max deadlift is.

looking at the businesses they own and the mgmt teams behind them i dont think the passing of the ol man will hurt them too much. perhaps it will make them less risk averse?

imo i rather have this than an sp500 etf…

I am actually using it as a benchmark as opposite to $SPY. It both has the broad market element (long only) and a doze of active management to compare with. Yet, I am not having a single BRK share in the portfolio.

TSLA stock, bruh. As Buffet says, “diversifying is for people that don’t know what they’re doing”.

Chances are you wont make it to the next level :frowning:


Acme Brick Company

H.H. Brown Shoe Group

Applied Underwriters

HomeServices of America

Ben Bridge Jeweler

International Dairy Queen, Inc.

Benjamin Moore & Co.

IMC International Metalworking Companies

Berkshire Hathaway Automotive

Johns Manville

Berkshire Hathaway Energy Company

Jordan’s Furniture

Berkshire Hathaway GUARD Insurance Companies

Justin Brands

Berkshire Hathaway Homestate Companies

Kraft Heinz

Berkshire Hathaway Specialty Insurance


BH Media Group

Louis - Motorcycle & Leisure


Lubrizol Corporation

Borsheims Fine Jewelry

Marmon Holdings, Inc.


McLane Company

Buffalo NEWS, Buffalo NY

MedPro Group


MiTek Inc.

Business Wire

National Indemnity Company

Central States Indemnity Company

Nebraska Furniture Mart

Charter Brokerage


Clayton Homes

Oriental Trading Company

CORT Business Services

Pampered Chef®

CTB Inc.

Precision Castparts Corp.


Precision Steel Warehouse, Inc.

Fechheimer Brothers Company

RC Willey Home Furnishings


Richline Group

Forest River

Scott Fetzer Companies

Fruit of the Loom Companies

See’s Candies

Garan Incorporated

Shaw Industries

Gateway Underwriters Agency

Star Furniture

GEICO Auto Insurance

TTI, Inc.

General Re

United States Liability Insurance Group

Helzberg Diamonds

XTRA Corporation

That looks pretty diversified to me!

I think the nature of the company has to change when Buffet leaves. I mean, people practically worship the guy. The company will have a different and yes, probably more decentralize and risk averse management structure after that. Look at Apple for instance. They are still competent and stock is up, so we can’t say they really got worse. However, they certainly focus on more run of the mill things like apps and data service now, not the next blockbuster product spewed from Steve Jobs anus.

Chances are you aren’t good at picking up on sarcasm :frowning:

Have always been incredibly interested in buying BRK-B but terrified of what happens to the multiple when WB kicks the can or gives it up for health reasons. I assume those risks are priced in somewhat but the uncertainty keeps me away. Would LOVE to hold it now though all those industrials and financials make me drool

I am allergic from anything that contains T, S, L and A in it :frowning:

here’s a few:

  1. buffett dies is prolly the biggest issue. pretty sure a lot of investors will panic even though you guys said that he built a strong culture where it doesnt need him. plus multiple successor claimants may cause strife.

  2. from a dcf stand point. its expensive.

  3. his cos are typically pretty cyclical. we are at market highs. so if there is a downturn, his earnings will fall significantly.

  4. also keep in mind 20% of rev is in auto insurance co. auto insurance might die 10 yrs from now. self driving cars etc. competition will prolly as more cars become self driving.

  5. from a corporate structure as a corporation. nearly 50% is invested in public cos which is inefficient. if you invest in public corps you should really have a partnership structure.

I am interested in it too. I currently view it as an index fund with leverage that is not accessible to me otherwise. The risk, which worries me, is if Warren dies and they try to change how the businesses work under the umbrella. He is very laid back, but someone could try to create synergies and other nonsense and screw things up. Conglomerates don’t seem to have a great track record in general.

On fundamentals? I mean, you aren’t alone.

“2. from a dcf stand point. its expensive.”

So I am wondering, since I am not a fundamentals person, does BRK trade at a valuation premium to its components? That is, are people willing to hold this stock at a premium to intrinsic value since they believe that Buffett has some secret power? If so, it is possible that the company could be unchanged intrinsically and still the stock will go down, and remain lower without Buffett.

what you mean your not a “fundamentals person”…are you some hot shot pleeb who puts all his monies in some low cost sp500 fund?

That dude made some serious gains. Financial gains.