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Stock Pick by Peregrine

BRK.A: Slow, Steady Growth

Start trading BRK.A with real money!

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Posted 2035 days ago on 12/27/11

BRK.A will go UP
$125,000.00 on 3/27/12
$214,280.00 (84.73% from time of market call)

The only reason I hold BRK.A and .B in UpDown is because I've always held at least 1-2 shares of .A and the matching shares in .B since I first started stock sims decades ago. Berkshire Hathaway doesn't really match my standard income-based investment strategy, but you might think about it in the same way as you think about a house. Imagine you know a person who is a master-carpenter, master-plumber, and easily the most handy guy you've ever met. This guy wants to buy a house, and he wants to buy a much bigger house than he can afford... so he sells shares in the house to his friends. This is a good investment, you know, because with this guy living in the house its always going to appreciate better than its neighbors. When he sells the house your share of the house will yield a better return than if you'd just bought any old house. Buffett is as much a master of the craft of investing in and buying companies as anyone has ever been, and he's got a good eye for talent too... His company is actually just his eye for the talent of other company owners and company management, which is why nobody should ever feel any real sense of insecurity about what will happen to BRK when he retires or dies. Just as with a master-handyman as the owner-occupier of a house, Berkshire Hathaway is going to grow... slowly, but always a bit better than the average. If they ever start issuing dividends I'll certainly double or triple down my position on BRK.A/.B... but until then it serves its purpose as a place to store perhaps 10-15% of your portfolio.

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