Mano vs. Mano (I'll take on BRK.A)
<http://boards.fool.com/Message.asp?mid=16901669>
<http://finance.yahoo.com/q?s=bnn+brka+LLPFX++TASCX+OAKMX++OAKSX++&d=t>
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Due to Berkshire Hathaway's size, I can easily beat BRK.A in any year.
Rather than just say it, I'll do it. I will compare my allocation of $100,000 in 5-securities (all, with due diligence, conservative investments) vs. $100,000 in BRKA.
I'll put 20% of a $100,000 portfolio in the following 5-stock/mutual funds and compare it to BRKA in a 1-year time frame:
1) BNN: Brascan (Price = $21.33)
2) LLPFX: Longleaf Partners (Price = $25.93)
3) TASCX: Third Avenue Small Cap Value Fund (Price = $15.93)
4) OAKMX: Oakmark Fund (Oakmark is closed) (Price = $36.63)
5 OAKSX: Oakmark Small Cap Fund (Price = $18.91)
BRKA's current price = $71,900.
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Here is the link:
<http://finance.yahoo.com/p?v&k=pf_7&d=v3>
Symbol, Price per Share, Shares Owned, & Total Security Valuation:
1) BNN
Price: $21.23
Shares Owned: 937.64
Value: $19,906.10
2) BRKa
Price: $72,000.00
Shares Owned: 1.3908
Value: $100,137.60
3) LLPFX 25.93 771.31 $20,000.07
Price: $25.93
Shares Owned: 771.31
Value: $20,000.07
4) TASCX 15.93 1,255.49 $19,999.96
Price: $15.93
Shares Owned: 1,255.49
Value: $19,999.96
5) OAKMX 36.63 546.00 $19,999.98
Price: $36.63
Shares Owned: 546.00
Value: $19,999.98
6) OAKSX 18.91 1,057.64 $19,999.97
Price: $18.91
Shares Owned: 1,057.64
Value: $19,999.97
Shares may have slightly adjusted during the time it took to develop the Yahoo Finance portfolio & write this post.
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I would personally be willing to go 100% BNN @ $21.23 (compared to BRKA on a 1-1 basis) because I believe the firm shows more financial disclosure to shareholders (the company even has conference calls!) , the stock is trading at a discount to book value, the company is buying back stock, management continues to buy back stock for their personal accounts, the market cap is smaller, and management is focused upon creating shareholder value.
But in the interests of fairness, I'll select a combination of 1-stock and 4-mutual funds to show how easy it is to beat BRKA at this stage of the game for BRKA!
If I am wrong, I would like posters to point out my ignorance and disrespect and misunderstanding of Berkshire Hathaway.
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Respectfully,
ad3@ihaveaddedconceittomakeonesbloodboil.com
3/15/02
It's like taking money from a baby. See you in one year! |
