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

To: Spekulatius who wrote (33207)	1/5/2009 2:06:18 AM
From: Paul Senior	Respond to of 78633

Perhaps a contrary opinion - or heretical opinion -g- - might be to short Berkshire. The stock's come back up from its lows. Financial numbers (roe) don't all look so great. To justify the current p/e and 1.3 book value on a conglomerate affected by consumer spending, I'd say a buy or hold now is a bet that Mr. Buffett can come through with some tremendous market-approving stock buys with the cash he's got available. On the pressure for a decline in the stock, any large further market decline will cause redemptions by value (growth?) funds who might want to sell or have to sell their BRK shares. Of course true Buffett-heads are buy-'n-holders so they won't sell. (Maybe Mr. Buffett himself is buying shares these past couple of months.) If the market falls further, with the stock not having a dividend, with people being concerned with Buffett aging, with the company already showing its worst performance in decades, the stock could be a loser in '09. Just my conversational opinion. -g-