Phillyfed's Account Talk

[phillyfed]

Warren Buffett's Berkshire Hathaway shares have been up nearly 20% the past few days. They were up an amazing 9% today (B-class) even thou the market was flat.

There was an article in Barrons this past weekend making an argument that Berkshire shares are worth half of what their true assets are worth. I picked up 2 B-class shares last Thursday at $2,788 down from a 52 week hi of $5200. This marked only the 4th time in Berkshire Hathaway that the shares were selling at a 50% discount to their prior highs and each time that has happened in the past, the market was severly oversold after the smoke cleared.

I own 9 shares now on my road to the riches :laugh:

 

[Gumby]

Warren Buffett's Berkshire Hathaway shares have been up nearly 20% the past few days. They were up an amazing 9% today (B-class) even thou the market was flat.

There was an article in Barrons this past weekend making an argument that Berkshire shares are worth half of what their true assets are worth. I picked up 2 B-class shares last Thursday at $2,788 down from a 52 week hi of $5200. This marked only the 4th time in Berkshire Hathaway that the shares were selling at a 50% discount to their prior highs and each time that has happened in the past, the market was severly oversold after the smoke cleared.

I own 9 shares now on my road to the riches :laugh:

Great stock and great price.

 

[phillyfed]

Great stock and great price.

Yes....And Berkshire shares sold off because of the perception that Buffett made a bad bet on Goldman Sachs spending $5 Billion on the preffered shares when they were at $125 or so and now they are half of that but he received in return a 10% dividend on Goldman Shares preferrred stock that could possibly pay that 5 Billion off within 7-10 years and he gets an option to buy more Goldman Sachs preferred at a strike price of $115 in 5 years and then again in 10 years. Thats just the icing on the cake.

That type of investment isn't available to the average Joe that invests but if you purchase his Berkshire Hathaway shares, you get that same return on investment that he does.

He just reached agreement on a similar deal with General Electric when the shares were at $15.

If you chart Berkshire Hathaway (BRK.A or BRK.B) and compare it to the S&P it crushes it. It really shows you what a smart dividend investor can do in the long term. IMO, Berkshire should be the backbone of any portfolio. IMHO, Even if you feel like you've had a long period of success at selling at the highs and buying at the lows and that long term investing is for suckers, you should always mix that type of investing with Buffetts model as well.

 

[350zCommTech]

He just reached agreement on a similar deal with General Electric when the shares were at $15.

I believe GE was at $22 when he made the deal. I remember because I commented at the time that GE could be a $10 stock. It got down to $12.5.

 

[phillyfed]

Received my 2008 annual TSP statement today..... +8.69% return

That was almost identical to my 2007 TSP annual return.

Anyway, I did a 100% IFT from 100G to 40S 30C 30I today, last I checked at 3pm, the Dow was down 210....WTF?

 

[phillyfed]

As for the stimulus......Its clear that Wall St. wanted more free money going directly to them to tuck away like the first stimulus. Paulson was great to them. Gave them BILLIONS WITH NO STRINGS ATTACHED.

Now they'll punish the markets and all investors. CORPORATE WELFARE, FOR ALL THE CROOKS Isn't gonna happen the 2nd time around! Now we have to watch the ENTITLED stomp their feet like spoiled brats as the market tanks and they blame Washington because the federal government will limit the Trillions of toxic debt they'll take on that the greedy crooks packaged up.

Bottom line.....Its time to seperate the winners from the losers in the Banking system. If you own garbage.....ITS YOUR GARBAGE! Not my kids garbage that they'll inevitably inherit. No more bailouts!!!

 

[phillyfed]

Received my 2008 annual TSP statement today..... +8.69% return

That was almost identical to my 2007 TSP annual return.

Anyway, I did a 100% IFT from 100G to 40S 30C 30I today, last I checked at 3pm, the Dow was down 210....WTF?

Should have waited a few days.