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brk.b stock any good?

323 110 February 15, 2018 at 03:35 PM
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this stock looks like a guaranteed win in the long run

opinions please

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#2
Yes, No, Maybe.
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#3
Nobody knows

Individual stocks have more risk but potentially more return then well diversified index funds
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#4
Quote from dhodson
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Nobody knows

Individual stocks have more risk but potentially more return then well diversified index funds
But Berkshire isn't an individual stock. Not really. It's a very well managed mutual fund. Except being pigeon holed into a particular sector, it's free to just pick good companies to own.

What does Berkshire hold?

American Airlines Group Inc. 9.61%
Apple Inc. 3.26%
American Express Company 17.47%
Axalta Coating Systems Ltd 9.57%
Bank of America Corp 6.60%
Bank of New York Mellon Corp 5.94%
Charter Communications, Inc.
Costco Wholesale Corporation 0.99%
Delta Air Lines, Inc. 7.45%
Davita Inc 21.04%
Graham Holdings Co 1.94%
General Motors Company 3.52%
Goldman Sachs Group Inc 2.91%
International Business Machines Corp. IBM 0.22%
Johnson & Johnson 0.01%
Kraft Heinz Co 26.73%
The Coca-Cola Co 9.39%
Liberty Global plc - Class A Ordinary Shares
Liberty Global plc - Class C Ordinary Shares
Liberty Latin America Ltd 1.61%
Liberty Latin America Ltd 0.76%
Liberty Sirius XM Group 8.37%
Southwest Airlines Co LUV 8.03%
Mastercard Inc 0.47%
Moody's Corporation 12.92%
Mondelez International Inc 0.04%
Monsanto Company 2.66%
M&T Bank Corporation 3.58%
Procter & Gamble Co 0.01%
Phillips 66 9.79%
Restaurant Brands International Inc
Sirius XM Holdings Inc.
Sanofi SA (ADR) SNY 0.16%
Store Capital Corp 9.80%
Synchrony Financial 2.66%
Teva Pharmaceutical Industries Ltd (ADR) 1.91%
Torchmark Corporation 5.50%
United Continental Holdings Inc 9.52%
United Parcel Service, Inc. 0.01%
U.S. Bancorp 5.25%
USG Corporation 27.57%
Visa Inc 0.47%
Verisk Analytics, Inc. 0.95%
Verisign, Inc. 13.27%
Verizon Communications Inc.
Wells Fargo & Co 9.31%
Walmart Inc 0.05%

That's well diversified.

To answer OP's question. Yes. It's not a shooting star like Netflix or Nvidia but it's a solid long term hold.
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you buying high also when warren dies in next few years the grannys will sell
https://investorplace.com/2017/05...oZgXkly7IU
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#6
No it's a stock

Is GE not a stock
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Quote from dhodson
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No it's a stock

Is GE not a stock
Ge is a stock. It doesn't own shares in a bunch of different companies.

I would say that brk.b is more like a mutual fund holding multiple different stocks.
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#8
Lots of companies own either in part or entirely stakes in other companies. That doesnt change that its a stock. Interestingly Brk is known in part for its stake in insurance and one factor that has brought GE down lately is its previous ownership of genworth and its continued obligations to it.

Now i wouldnt compare brk to a penny stock or some small company but to say it isnt a stock and it just as diversified as a broad index fund is misleading in my view. There are plenty of discussions on bogleheads on this for anyone wanting a more in depth discussion.

I actually own brk in a taxable account (no dividend tax drag) but i wouldnt compare it to my ownership of index funds. Who is to say what will happen when WB steps out (ill predict temporary small drop and then regain of the loss with no real change but nobody knows).
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Quote from dhodson
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No it's a stock

Is GE not a stock
Really? How much of Apple does GE own?

GE was a company that had diversified divisions in a variety of industries. It has shrunken and will continue to shrink.

Berkshire is a holding company who's only job is to invest money in other companies. It doesn't produce anything of it's own. That's exactly what a mutual fund does.
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Quote from dhodson
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Lots of companies own either in part or entirely stakes in other companies. That doesnt change that its a stock. Interestingly Brk is known in part for its stake in insurance and one factor that has brought GE down lately is its previous ownership of genworth and its continued obligations to it.

Now i wouldnt compare brk to a penny stock or some small company but to say it isnt a stock and it just as diversified as a broad index fund is misleading in my view. There are plenty of discussions on bogleheads on this for anyone wanting a more in depth discussion.

I actually own brk in a taxable account (no dividend tax drag) but i wouldnt compare it to my ownership of index funds. Who is to say what will happen when WB steps out (ill predict temporary small drop and then regain of the loss with no real change but nobody knows).
You simply don't understand what Berkshire is. It's a holding company. What do holding companies do? Learn that and you'll understand why your point is not apropos.

As for WB stepping out, the same can be said of any celebrity mutual fund manager. There are plenty of them. Also, it's been known for sometime that Warren hasn't been running Berkshire day to day for a while now. He's a figurehead. The bench is deep at Berkshire.
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Last edited by ghostofposterspast February 16, 2018 at 10:09 AM.
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Interesting that you seem to realize that GE was once well diversified but it isnt any longer but some how you cant make a similar connection that this could be possible with Brk in the future (i dont think brk is going away but you never know). All companies are an investment to make money and really nothing else. What it produces or not is irrelevant. Brk has owned some companies completely and thus "made that product" just like GE the parent has had some GE subsidies that made stuff that the parent company did not.

Funny that i need to learn. Im fairly familiar with Brk. I own around 150k of it. Thats not including the amount from my index funds bc it by definition is a stock and thus part of a broad index fund. Now 150k isnt some crazy high amount but i like to buy some individual stocks and Brk is one especially in a taxable account fits for me with risk vs possible reward and i dont have to deal with tax issues until i sell. There is plenty of good discussion about this on bogleheads.org if you actually are interested. I doubt that you are interested by your tone so ill just wish you good luck especially with people who post a question is Brk a good stock and you feel its appropriate to tell them that its really a mutual fund.
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Quote from ghostofposterspast
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Really? How much of Apple does GE own?

GE was a company that had diversified divisions in a variety of industries. It has shrunken and will continue to shrink.

Berkshire is a holding company who's only job is to invest money in other companies. It doesn't produce anything of it's own. That's exactly what a mutual fund does.
the only problem with your line of thought is that the value of a share is determine by the market and not fundamentals.

All of Berkshire's holdings can go up and the value of Berkshire stock goes down. comparable to a company posting earnings that meet their expectations but the market was hoping for more. so the stock price dips.
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Quote from dhodson
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Interesting that you seem to realize that GE was once well diversified but it isnt any longer but some how you cant make a similar connection that this could be possible with Brk in the future (i dont think brk is going away but you never know). All companies are an investment to make money and really nothing else. What it produces or not is irrelevant. Brk has owned some companies completely and thus "made that product" just like GE the parent has had some GE subsidies that made stuff that the parent company did not.

Funny that i need to learn. Im fairly familiar with Brk. I own around 150k of it. Thats not including the amount from my index funds bc it by definition is a stock and thus part of a broad index fund. Now 150k isnt some crazy high amount but i like to buy some individual stocks and Brk is one especially in a taxable account fits for me with risk vs possible reward and i dont have to deal with tax issues until i sell. There is plenty of good discussion about this on bogleheads.org if you actually are interested. I doubt that you are interested by your tone so ill just wish you good luck especially with people who post a question is Brk a good stock and you feel its appropriate to tell them that its really a mutual fund.
Funny how you claim to own Berkshire but have no idea what it is. I guess it's true. Some people buy things when they have no idea what they are.
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Quote from dayv
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the only problem with your line of thought is that the value of a share is determine by the market and not fundamentals.

All of Berkshire's holdings can go up and the value of Berkshire stock goes down. comparable to a company posting earnings that meet their expectations but the market was hoping for more. so the stock price dips.
Good theory. Let's see the reality.

"The Securities and Exchange Commission's Investment Company Act of 1940 — the defining legislation for the mutual fund business — specifies that an "investment company" (read "mutual fund" for non-lawyer types) is any firm with more than 40 % of its assets tied up in non-controlling stakes of other companies."

Which is exactly what Berkshire is.

https://www.marketwatch.com/story...2014-05-05
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Quote from ghostofposterspast
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Good theory. Let's see the reality.

"The Securities and Exchange Commission's Investment Company Act of 1940 — the defining legislation for the mutual fund business — specifies that an "investment company" (read "mutual fund" for non-lawyer types) is any firm with more than 40 % of its assets tied up in non-controlling stakes of other companies."

Which is exactly what Berkshire is.

https://www.marketwatch.com/story...2014-05-05
Quote :
Kind of sounds like Buffett's Berkshire Hathaway.

There have been plenty of conglomerates to run on the edge of the SEC's murky rules, many taking behind-the-scenes steps to stay on the stock side of things (buying government bonds rather than stocks with excess cash, for example, thereby reducing corporate ownership and the potential to be classified as an investment company).
Berkshire is a large diversified conglomerate, they aren't as you selectively quoted an investment or mutual fund. They own controlling interests and bonds to skirt the rules.

http://www.berkshirehathaway.com/...tqtr17.pdf
Quote :
However, repurchases will not be made if they would reduce the total value of Berkshire's consolidated cash, cash equivalents and U.S. Treasury Bills holdings below $20 billion. The repurchase program does not obligate Berkshire to repurchase any dollar amount or number of Class A or Class B shares and there is no expiration date to the program.
Quote :
The accompanying unaudited Consolidated Financial Statements include the accounts of Berkshire Hathaway Inc. ("Berkshire" or "Company") consolidated with the accounts of all its subsidiaries and affiliates in which Berkshire holds controlling financial interests as of the financial statement date. In these notes the terms "us," "we," or "our" refer to Berkshire and its consolidated subsidiaries.
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