Good time to buy Berkshire shares?

CFA General
#1

It’s down 20% from its peak now. Basicall you got to invest in a proven hedge fund without hefty fees. any thoughts?

#2

bear agrgument: he’s old & he may croak at any time. he’s talking more than usual the gov’t is not letting value investors play

#3

I agree with Virgin. But, Warren Buffet did say be greedy when others are fearful. I’d probably buy in if I had the cash.

#4

it was at too high a valuation before and the man is old.

#5

Buy into a Berk that won’t die in the next 10 years - Bruce Berkowitz’s Fairholme Fund (FAIRX)

#6

Leucadia is another “young berkshire” so they say. I saw Bruce on Consuelo Mack’s Wealth Track. It wasn’t a great interview.

#7

i’ve seen bruce berkowitz on tv several times and he says the same things over and over (i’m driving less and getting older, go long on healthcare, etc etc)

#8

I agree with his age, and the main fact that you cannot consistently beat the market when you begin to manage that much capital. A great time to buy would be the days after he is gone. He’s set the business up for success, albeit on a smaller level of returns than he used to be able to make with less capital. And a side point, show some respect. It’s Warren F-ing Buffett.

#9

The poor man’s Berkshire would be to look up the 13F on Edgar and invest in the top 5 or 10 stocks excluding whatever has been down more than 2% more than the market’s decline. Wait to invest in those stocks (the Citigroups of the world) until they begin to show some positive momentum. You could make a diversified portfolio from those stocks until Buffett begins to make acquisitions and then buy Berkshire (you could also buy Berkshire and short relative weights of the financials, but that’s more work and it doesn’t make sense to short companies that are already down 50%). Of course part of the reason why Berkshire is down, besides losses on investments, is that he had derivatives losses due to selling European puts with long maturities. Obviously it will make sense that he takes losses on these in the short-term when the market is down and he has to mark them to market. Those losses will never be realized, but they will be large in the short-term.