You could be right. If it's legit to add all that $35B now to enterprise value, then maybe current bv is perhaps 7% or more higher than what Yahoo shows as bv -- $244. And stock apparently would be, or is, a buy for Mr. Buffett.
I continue to sell because I believe I can get the stock back later at a lower price. At 20x p/e, the company doesn't seem to be performing well-enough that I want to hold the stock. Especially as I am concerned with the overall valuation of the market.
For ltbh people, they wouldn't want to sell -- it'd be almost like giving up on Buffett's prowess to continue to provide performance over the longer term.
For me, given my personal situation (I'm a geezer after all -g-), I'm looking at mainly three possibilities for investing in 20x p/e stocks:
1. I've a bunch of stocks with growing rev and earnings and trading at 20x or higher and are having good stock performance. I could add to those positions.
2. I've got BRK-B, maybe others that are at 20x earnings but haven't moved up much. Is it that they haven't moved up YET, but they will or should? Am I better served adding to these than to the ones in #1 that have been performing well? I feel like if BRK hasn't moved yet, then when (given this very high market already)? Maybe it won't much.
3. What the heck am I doing holding on to this stock? I should be elsewhere. And that's what I settled on and what I'm doing with the proceeds of my sales.
All jmo, and I've been wrong many, many times. -g-
You are perhaps in a different situation from me, so your interests and perspective and timeframes may differ. BRK could be a buy for you here. |
