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

To: Spekulatius who wrote (44584)	9/26/2011 1:25:59 PM
From: Jurgis Bekepuris	Respond to of 78699

I am really torn what to do about BRK. On one hand, it is cheapest in quite a while. And if they buyback, Buffett is implying that he does not see better opportunities elsewhere even at current low prices. On the other hand, BRK is big. Huge. Which is tough to grow well. It is a conglomerate and even with all Buffett's assurances that it's a conglomerate of great businesses, I am not so sure it's easy to keep these businesses great as NetJets example showed. We also know from Buffett himself that he holds some crappy businesses that he won't sell because he never sells subsidiaries. So it's not just great businesses. On the investment side I am not excited about Buffett transitioning away. Perhaps the guys he hired are good. But are they great? Can they manage huge BRK-size sums of money? Will they be happy in coo-petition at BRK? I would give about 90% chance that they won't be as good as Buffett. Finally, Buffett clock is ticking and I really don't want to see him die, but it will happen. Every day sooner rather than later. :( Disclosure: I have a small BRK position.