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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?


To: Larry S. who wrote (3074)9/28/2002 4:01:04 PM
From: Jurgis Bekepuris  Read Replies (2) | Respond to of 4691
 
Larry,

Although Buffett claims opposite, I think there is quite high Buffett premium built in into the stocks. However, BRK itself could step in and buy back the stock if it heavily declined after Buffett's death. I.e. they could stop the fall beyond what they consider intrinsic value of the company. It is unknown what that limit is.

I claim that BRK finances are VERY DIFFICULT to analyze, so buying it is a leap of faith in Buffett and his successors. Other people may have different opinions. I don't have a price in mind at which I would buy if Buffett died and stock dropped.

Jurgis



To: Larry S. who wrote (3074)9/28/2002 6:20:53 PM
From: cfimx  Respond to of 4691
 
It would immediately lose 15% to 20% of its value in a matter of two or three sessions. Then it would snap back violently, and then settle into a range 5% to 10% below it's prior trading level. It would begin to work its way higher and over time, the new Buffett discount would dissapear. Buy the stock, as Buffett advises.