Brkb

[JohnHenry]

I was thinking of purchasing a few shares for long term. Any thoughts?

[mrmarket]

I was thinking of purchasing a few shares for long term. Any thoughts?

If you want to hold it forever, it's probably a good bet. However, how long is Buffet gonna be around??

[JohnHenry]

If you want to hold it forever, it's probably a good bet. However, how long is Buffet gonna be around??

Yeah, I know. Thanks Mr. M.

[jiesen]

I was thinking of purchasing a few shares for long term. Any thoughts?

I thought you already had a couple A shares. What, then, would be the point of buying B shares?

Unless BRKA is just a small portion (far less than 20%) of your portfolio, you'd probably be better off looking for other avenues of diversification, rather than concentrating more in BRK, even though it is a high-quality stock, and you could do much worse than buying more of it.

[JohnHenry]

I thought you already had a couple A shares. What, then, would be the point of buying B shares?

Unless BRKA is just a small portion (far less than 20%) of your portfolio, you'd probably be better off looking for other avenues of diversification, rather than concentrating more in BRK, even though it is a high-quality stock, and you could do much worse than buying more of it.

Heck, those two A shares doesn’t do me any good if they are locked up in a metal box at the bank and I can’t sell them. Well, if I buy 10 B shares at the split price and held them until I graduate or longer and maybe those shares might climb back to the pre-split price. I was thinking out loud or maybe I can’t help being greedy.

[jiesen]

why buy brkb?

Heck, those two A shares doesn’t do me any good if they are locked up in a metal box at the bank and I can’t sell them. Well, if I buy 10 B shares at the split price and held them until I graduate or longer and maybe those shares might climb back to the pre-split price. I was thinking out loud or maybe I can’t help being greedy.

Ok, well let me try to help you out a bit with that thought. If brkb were to double, triple, or even go up 50x (yeah that's likely), then brka would do the same thing. So if you bought $1000 of brkb, and say it jumped to $50k over the next 10 years- congratulations, you just made a nice $50k... but what does that *really* matter to you, if your two BRKA shares are now worth 50x200,000=10 million dollars. So you see my point yet?

Those share in the metal box are in precicely the place that does you the MOST good for a long-term investment like BRKA should be for you. Trading BRKB for a short term (yes, 5-10 years would be a short term trade for this stock) gain is, in my opinion a silly thing for you to do right now. I'd hold on to the cash, and focus on other opportunities for investment, if that's what you want to do with the money. But really, if you have a couple thousand dollars to do with as you please, why not just spend it on a car, a new computer, or just books for your classes? These are things you could probably use right now, and with those brka shares working for you in the safe, you don't need to worry about investing your spending money... really!

If you want a short term trade, I can give you one relatively safe play that I just made today. DRUG.OB is trading at .72-.74 right now, and will very likely trade for $.80 in the near future. I just 8x'ed up on my position today at 0.74 (I was in from over $1 a few years ago). The chairman of the company, who owns about 40% of it just made a (albiet non-binding) offer for the whole shebang at 0.80, so it's a fairly safe bet that you'll get around a 10% return over the next 3-6 months, as long as Yanglin Han makes good on his offer. Even if he doesn't, with the revenues an profits growing for DRUG.OB, it's a stock easily worth more than $0.75.

No, this play isn't a sure thing, and it's not going to double your money in a year, or 50x it in 5, but neither will a trade on BRKB... consider that the market cap of BRK (already in the $100B+ range will need to go up 50x into the Trillions)for BRKB to reach its pre-split range. Hopefully you realize now that trading a stock for reasons related to its having been split recently is not a wise straegy.

Anyone have other comments for our young aspiring Warren Buffett? And does anyone disagree with my points?

I hope that I'm being at least somewhat helpful to you here, JH!

[JohnHenry]

Ok, well let me try to help you out a bit with that thought. If brkb were to double, triple, or even go up 50x (yeah that's likely), then brka would do the same thing. So if you bought $1000 of brkb, and say it jumped to $50k over the next 10 years- congratulations, you just made a nice $50k... but what does that *really* matter to you, if your two BRKA shares are now worth 50x200,000=10 million dollars. So you see my point yet?

Those share in the metal box are in precicely the place that does you the MOST good for a long-term investment like BRKA should be for you. Trading BRKB for a short term (yes, 5-10 years would be a short term trade for this stock) gain is, in my opinion a silly thing for you to do right now. I'd hold on to the cash, and focus on other opportunities for investment, if that's what you want to do with the money. But really, if you have a couple thousand dollars to do with as you please, why not just spend it on a car, a new computer, or just books for your classes? These are things you could probably use right now, and with those brka shares working for you in the safe, you don't need to worry about investing your spending money... really!

If you want a short term trade, I can give you one relatively safe play that I just made today. DRUG.OB is trading at .72-.74 right now, and will very likely trade for $.80 in the near future. I just 8x'ed up on my position today at 0.74 (I was in from over $1 a few years ago). The chairman of the company, who owns about 40% of it just made a (albiet non-binding) offer for the whole shebang at 0.80, so it's a fairly safe bet that you'll get around a 10% return over the next 3-6 months, as long as Yanglin Han makes good on his offer. Even if he doesn't, with the revenues an profits growing for DRUG.OB, it's a stock easily worth more than $0.75.

No, this play isn't a sure thing, and it's not going to double your money in a year, or 50x it in 5, but neither will a trade on BRKB... consider that the market cap of BRK (already in the $100B+ range will need to go up 50x into the Trillions)for BRKB to reach its pre-split range. Hopefully you realize now that trading a stock for reasons related to its having been split recently is not a wise straegy.

Anyone have other comments for our young aspiring Warren Buffett? And does anyone disagree with my points?

I hope that I'm being at least somewhat helpful to you here, JH!

Ok, I think I understand where you are going with BRK market cap. Ok, it’s unrealistic for the stock to reach its pre-split price but it has potentials to go to $100 or $200. Well, give me a few more days to think about what you said, I'm still not 100% clear. First week of school was rough, who gives a test on the second week of school and why!

[jiesen]

following up

btw, I sold all of my DRUG.OB at .79 recently for about a 0.05 (6%) profit. might have had another .02 or .03 if I would have kept it for another few months until the deal closes, but at 0.79 it was close enough, and 6% in 3 months is a pretty good return in my book, especially given the low risk of this trade (your BRKA is up much more than that, but with what I would consider a lot more market risk involved).