Author Topic: BRK Ever Hit 1.2?  (Read 5623 times)

wescobrk

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BRK Ever Hit 1.2?
« on: February 09, 2016, 07:50:46 AM »
In a couple of months, I may have access to my 401k as I may start a new job.
I would love to put a huge amount in BRK if it were to go below 1.2.
Even in this volatile market brkb doesn't seem to go below $125.

This seems like waiting for Godot.
Hopefully it drops below in March or April.

Anyone know the 1.2 number.  Does it have to drop another 4% or so?
Edit as I should have put prospective 1.2 book over the next quarter or so, as a 2 second google search I can pull up the last q number.
I don't want to come off as a lazy ass.
Thanks.
« Last Edit: February 09, 2016, 08:09:35 AM by wescobrk »


petec

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Re: BRK Ever Hit 1.2?
« Reply #1 on: February 09, 2016, 08:25:58 AM »
If it is a significant amount and for a long time, 4% won't affect your eventual outcome.

DCG

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Re: BRK Ever Hit 1.2?
« Reply #2 on: February 09, 2016, 09:36:36 AM »
I don't think there's a great way to track this. As BRK stock goes down, so likely do the shares of it's equity holdings, which in turn lowers BRK's book value.

longinvestor

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Re: BRK Ever Hit 1.2?
« Reply #3 on: February 09, 2016, 11:11:16 AM »
No.

If it does, unlikely to stay below 1.2x for very long. $60+B cash, that's some "legs" to take on.

wescobrk

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Re: BRK Ever Hit 1.2?
« Reply #4 on: February 09, 2016, 11:22:51 AM »
what was twocfa's option trade for BRK he talked about?
It'll probably never happen as this board has probably already forever removed the possibility.
It was nice of him to share, though.

Palantir

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Re: BRK Ever Hit 1.2?
« Reply #5 on: February 09, 2016, 11:29:49 AM »
Sell puts yo.
My Portfolio: AMZN, PAGP, FSLR, OKE, PYPL, RHT, MSFT

thepupil

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Re: BRK Ever Hit 1.2?
« Reply #6 on: February 09, 2016, 11:34:02 AM »
I don't think there's a great way to track this. As BRK stock goes down, so likely do the shares of it's equity holdings, which in turn lowers BRK's book value.

while this is true, it is not 1 for 1. because of the counter-cyclical deferred tax liability and because Berkshire holds a lot more other assets than stocks, the sensitivity of the book value relative to the change in equity portfolio is about 0.3


HWWProject

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Re: BRK Ever Hit 1.2?
« Reply #7 on: February 09, 2016, 03:00:02 PM »
Patiently waiting as well.  My current buy price is $178,500 at A shares. 

"An Investment in Knowledge Always Pays The Best Interest"

fareastwarriors

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Re: BRK Ever Hit 1.2?
« Reply #8 on: February 09, 2016, 04:52:43 PM »
Patiently waiting as well.  My current buy price is $178,500 at A shares.

Buying A shares? Baller...

gfp

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Re: BRK Ever Hit 1.2?
« Reply #9 on: February 10, 2016, 04:23:24 AM »
Current buyback number is between 120 and 121 on the B shares.  If you want BRK shares the difference between 125 and 121 isn't going to materially change your results.  BRK doesn't have $60 Billion cash on the balance sheet, but they are plenty flush to buy in a ton of shares if the opportunity presents itself.  It usually doesn't.  Declines in the stock portfolio are usually offset by retained earnings over the course of the quarter, as well as the previously mentioned swings to deferred tax liability.  I don't believe that Book Value per share has declined quarter to quarter since the buyback was instituted.  BV obviously did decline during the financial crisis, pre buyback policy.  Wells, Amex, DaVita are down a lot but most of that will show up in Q1 results if prices stay where they are or decline further, not the annual report BV number.  That gives BRK another 3 months of retained earnings to offset any after tax declines.  When it comes to buying BRK at the buyback number, close is good enough