Author Topic: What are you buying today?  (Read 772136 times)

globalfinancepartners

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Re: What are you buying today?
« Reply #2620 on: December 02, 2017, 10:55:32 AM »
$480 Billion market cap seems about right.  Not crazy low, could be a little low.  If they were willing to use leverage to buy a $150 billion business it would look too low in retrospect.

Low turnover might stabilize the price, but in my experience Berkshire tends to level out in market value for a while and then make fairly quick reappraisals higher as some perception changes a bit.  Because of the nature of continually hitting all time highs and a lot of long term, low basis, holders - Berkshire's share price tends to respond a lot to violating round number options strike price levels (190 for example) because people are forced to cover their short 'covered calls.'  If this FIFO law comes into being, that would only exacerbate those type of moves going forward.


DooDiligence

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Re: What are you buying today?
« Reply #2621 on: December 02, 2017, 02:41:45 PM »
$480 Billion market cap seems about right.  Not crazy low, could be a little low.  If they were willing to use leverage to buy a $150 billion business it would look too low in retrospect.

Low turnover might stabilize the price, but in my experience Berkshire tends to level out in market value for a while and then make fairly quick reappraisals higher as some perception changes a bit.  Because of the nature of continually hitting all time highs and a lot of long term, low basis, holders - Berkshire's share price tends to respond a lot to violating round number options strike price levels (190 for example) because people are forced to cover their short 'covered calls.'  If this FIFO law comes into being, that would only exacerbate those type of moves going forward.

Not good news for someone who's looking for a big dip to shove "all in" & free up a lot of time to study something other than equities  ;)

Thanks for the illumination (once again.)
abc | abev | aapl | bbh | brk.b | cri | cvs | dva | dis | ew | ffxdf | gpc | mo | nvo | sftby | vde

8 months left in the BRK.B 1st of the month DCA program (hoping 4 a selloff 2 go all in!)

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globalfinancepartners

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Re: What are you buying today?
« Reply #2622 on: December 05, 2017, 07:27:12 AM »
purchased February 2018 150 strike call options on Apple at 21.68 average cost.  this is a trade obviously

update - added more of same at 20.25, new average cost is 20.967
« Last Edit: December 06, 2017, 09:14:30 AM by globalfinancepartners »

DooDiligence

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Re: What are you buying today?
« Reply #2623 on: December 05, 2017, 08:52:26 AM »
A little more CVS.

The Aetna purchase looks expensive today but I believe it'll work out.

Less breakfast cereal & beach chairs & more Minute Clinics & medical supplies.

Which insurer would WalMart try to buy if they were so inclined?

I think CVS has an edge on becoming a healthcare superstore where WalMart won't be able to focus.
« Last Edit: December 05, 2017, 08:54:03 AM by DooDiligence »
abc | abev | aapl | bbh | brk.b | cri | cvs | dva | dis | ew | ffxdf | gpc | mo | nvo | sftby | vde

8 months left in the BRK.B 1st of the month DCA program (hoping 4 a selloff 2 go all in!)

-----

https://twitter.com/tunawish

Spekulatius

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Re: What are you buying today?
« Reply #2624 on: December 07, 2017, 03:50:40 AM »
recent buys are MLPs - BPL and SEP, which seem to have come under selling presssure (tax loss selling?)

I also bought some RE - a solid up insurance company that got hit by the hurricane season (like just about anyone else in the industry) , but has a very solid history of book value growth and reserving history. I think the latter is a better buy than BRK right now.
To be a realist, one has to believe in miracles.

EricSchleien1

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Re: What are you buying today?
« Reply #2625 on: December 07, 2017, 12:30:34 PM »
recent buys are MLPs - BPL and SEP, which seem to have come under selling presssure (tax loss selling?)

I also bought some RE - a solid up insurance company that got hit by the hurricane season (like just about anyone else in the industry) , but has a very solid history of book value growth and reserving history. I think the latter is a better buy than BRK right now.

RE has compounded BV at 12% since 1995. You don't think there's better stuff out there? Do you think they will compound higher in the future? Paying around book value seems good but can probably do better, no?

Jurgis

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Re: What are you buying today?
« Reply #2626 on: December 07, 2017, 01:00:12 PM »
If I knew that RE is going compound at 12% going forward 5-10 years, I'd buy tons of it.

I don't think there are (m)any opportunities in current market that offer 12% going forward. (IMO neither BRK nor FFH do; 12% is reachable for both just far from certain).

I doubt that RE (or AXS) can do 12% going forward either. I think that (re)insurance is still soft and gonna remain soft. Plus fixed income returns are crappy.
« Last Edit: December 07, 2017, 01:02:10 PM by Jurgis »

EricSchleien1

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Re: What are you buying today?
« Reply #2627 on: December 07, 2017, 01:25:08 PM »
If I knew that RE is going compound at 12% going forward 5-10 years, I'd buy tons of it.

I don't think there are (m)any opportunities in current market that offer 12% going forward. (IMO neither BRK nor FFH do; 12% is reachable for both just far from certain).

I doubt that RE (or AXS) can do 12% going forward either. I think that (re)insurance is still soft and gonna remain soft. Plus fixed income returns are crappy.

Got it. Different strokes. I think there's much cheaper shit out there. But that's what makes a market.

Bojack

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Re: What are you buying today?
« Reply #2628 on: December 07, 2017, 01:49:37 PM »
bought some bitcoin... where do i report for reindoctrination?

gjangal

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Re: What are you buying today?
« Reply #2629 on: December 07, 2017, 08:06:19 PM »
bought some bitcoin... where do i report for reindoctrination?

There are many people signing up for accounts at exchanges still. This thing is going to go on for a while