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Strategies & Market Trends : Buy Berkshire instead of Vanguard S&P (BRKA)

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To: Theo Karantsalis who wrote (230)3/14/2000 7:50:00 PM
From: David R  Read Replies (4) of 313
 
Comments requested:

I am certain that a major correction is looming for the tech sector. The valuations are unsustainable, and as a SW dev, I know that the technology story behind some of these .coms is very thin. I have been looking for a good hedge to protect myself. I thought to look for a fund that is taking a short position, but it seems that the current instability could kill shorts before any corrections occurs (as it has done for several years).

My reasoning is that the companies whose share price is down even though their performance is solid offer the safest "hedge". Given that, BRKA seems to be the ideal candidate. They are cash rich, and ready to buy in a troubled market.

So, my conclusion is that BRKA offers an excellent hedge against a major market correction, without the risk of taking a short position. Note that buying one share is going to be a major effort here (who as a spare 44K).

Any comments? Pro-con welcome!

David
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