Berkshire Hathaway Inc (BRK.B) Quote

BRK.B (Berkshire Hathaway) Weekly Analysis
By: TrendSpider | January 3, 2025

• Warren Buffett’s Berkshire Hathaway has started putting its massive $325 billion cash pile to work, recently adding to its stakes in Occidental Petroleum, Sirius XM, and VeriSign. SIRI, a leader in satellite radio, has struggled this past year, while VRSN, a dominant force in domain registrations, continues to deliver strong margins. These moves hint at renewed market optimism from the Oracle of Omaha.



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Looking at the VRSN, POOL, DPZ buys, since these are relatively small positions (by Berkshire standards), they are most likely Weschler / Combs picks. There are some similarities in their charts -- all former strong LT growth stocks that went flat in recent years. The DPZ and POOL charts have been flat for ~ 4 years, and VRSN flat for almost 6 years. So definitely a pattern here in the stock selection process.

Other interesting similarities include the relatively large short positions in POOL (8-10% range) and DPZ (6-8%), although VRSN is only 2-3% range. The balance sheets are all decent, with no red flags, so not too much to get in the way of a recovery. Verisign has phenomenal margins (56-69%) and ROA is 42%.

It would be interesting to see the bull case for these stocks, and the factors indicating a revival in their businesses. Lots of investors are undoubtedly analyzing the Weschler / Combs picks to get a feel for the style / approach of the new guys.



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Berkshire Hathaway bought another $15.5 million worth of Versign $VRSN. Buffett has now bought about $90 million worth over the past 2 weeks
By: Barchart | January 1, 2025

• Warren Buffett Insider Trading Alert

Warren Buffett's Berkshire Hathaway bought another $15.5 million worth of Versign $VRSN. Buffett has now bought about $90 million worth over the past 2 weeks.



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Warren Buffett Insider Trading Alert: Warren Buffett's Berkshire Hathaway purchased $74 million worth of Verisign $VRSN
By: Barchart | December 27, 2024

• Warren Buffett Insider Trading Alert

Warren Buffett's Berkshire Hathaway purchased $74 million worth of Verisign $VRSN.



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You too, GFP. My individual issues didn't do as well as my adored index funds. Walgreens suffered terribly as did my Leggett and Platt. BRK was perhaps my best individual performer. Travelers and Raytheon had good years. For all the tumult, Boeing didn't end too badly. Best of all, engineer son still has his job there

I still have a bushel of ROK which was down slightly for the year but came back strongly at the end. My only newer holding, Deere did well.

Bar, board, Happy Holidays to all, and a prosperous 2025 :o)



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>>> All 41 Stocks Warren Buffett Has In Berkshire Hathaway's Portfolio


Forbes

by Catherine Brock

Updated Dec 3, 2024


https://www.forbes.com/sites/investor-hub/article/all-stocks-warren-buffett-berkshire-hathaway-portfolio/


TABLE OF CONTENTS

Understanding Warren Buffett's Investing Strategy

Warren Buffett's Top 10 Investments

Berkshire Hathaway's Other Holdings

Recent Changes To The Portfolio

Why Is Warren Buffett Known As One Of The Best Investors?

Billionaire investor Warren Buffett has the job of delivering value to the shareholders of Berkshire Hathaway (BRK.A)(BRK.B), the massive conglomerate he runs. Buffett's preferred value-creation strategy involves buying good companies outright. But when the timing is right, he will also take partial ownership positions via public stock trades.

Investors watch Buffett's public stock moves closely for inspiration. He is known for his methodical investing process, and his trades signal where he sees value and where he doesn't. See what takeaways you can gather from this review of the entire Berkshire Hathaway stock portfolio, overseen by the Oracle of Omaha himself.

Understanding Warren Buffett's Investing Strategy

Buffett is a value investor who favors proven business models, ironclad competitive advantages and savvy leadership teams. He chooses reliable companies he can hold for the long term, in part because he doesn't believe it's possible to time the market.

The value approach involves estimating a company's intrinsic value and using that number to set a maximum buy price. The target price would incorporate a margin of safety to minimize downside risk and enhance upside potential. As an example, if Buffett decides Company A has a fair value of $100 per share, he might not want to pay more than $65 for it. In that case, the margin of safety is 35%.

If Company A stock is trading around $100, it isn't investable. If a temporary circumstance, such as a market crash, pulls the price down to $65, it may be time to buy. You can see this in action during weak markets when Berkshire deploys more cash into stock shares.

Much more than breaking news, our diverse reporting digs deeper with unparalleled insights that empower you to make better informed decisions. Become a Forbes member and unlock unlimited access to cutting-edge strategies, actionable insights, and updated analysis from our network of leading finance experts.

Warren Buffett's Top 10 Investments

The SEC requires Berkshire Hathaway to report its public stock holdings quarterly via Form 13F. Berkshire also discloses "insider" trades on Form 4. The conglomerate is an insider where it owns 10% or more of another company's outstanding stock.

All 41 Warren Buffett stocks below are compiled from Berkshire's Form 13F as of June 30, 2024, plus subsequent Form 4 filings related to the Bank of America (BAC) position. Position values are calculated from stock prices as of September 9, 2024.

The top 10 stocks in the Berkshire Hathaway portfolio are:

Apple (AAPL): $87.37 billion
American Express Company (AXP): $38.09 billion
Bank of America (BAC): $34.14 billion
Coca-Cola (KO): $28.79 billion
Chevron (CVX): $16.78 billion
Occidental Petroleum (OXY): $13.38 billion
Moody's (MCA): $11.90 billion
Kraft Heinz (KHC): $11.73 billion
Chubb Limited (CB): $7.88 billion
Davita (DVA): $5.44 billion


Berkshire Hathaway's Other Holdings

Smaller Berkshire Hathaway stock positions range in value from $3.29 billion for Citibank to $9 million for Atlanta Braves Holdings. Of note are several positions issued by Liberty Media, which have since been restructured to split off the Sirius XM satellite radio business. Interestingly, the Berkshire portfolio also includes two small S&P 500 ETF positions with an aggregate value of $42 million.

Here are the remaining positions in the Berkshire portfolio, after the top 10:

Citigroup (C): $3.29 billion
Kroger (KR): $2.61 billion
Visa (V): $2.36 billion
Verisign (VRSN): $2.33 billion
Mastercard (MA): $1.94 billion
Amazon (AMZN): $1.74 billion
Liberty SiriusXM Group (LSXMK): $1.56 billion
Nu Holdings Ltd (NU): $1.47 billion
Aon PLC (AON): $1.43 billion
Capital One Financial (COF): $1.41 billion
Charter Communications (CHTR): $1.25 billion
Ally Financial (ALLY): $1.15 billion
T-mobile (TMUS): $911 million
Liberty SiriusXM Group (LSXMA): $786 million
Formula One Group (FWONK): $585 million
Louisiana Pacific (LPX): $561 million
Liberty Live Group (LLYVK): $429 million
Floor & Décor Holdings (FND): $427 million
Sirius XM Holdings (SIRI): $355 million
Heico (HEI.A): $267 million
Ulta Beauty (ULTA): $263 million
Liberty Live Group (LLYVA): $191 million
NVR (NVR): $102 million
Diageo PLC (DEO): $29 million
Lennar (LEN.B): $28 million
Jefferies Financial Group (JEF): $25 million
Liberty Latin America (LILA): $24 million
Vanguard 500 ETF (VOOVanguard S&P 500 ETF 0.0%): $22 million
SPDR S&P 500 ETF (SPYPrincipal Shareholder Yield Index ETF 0.0%SPDR S&P 500 ETF Trust 0.0%): $21 million
Liberty Latin America Class C (LILAK): $12 million
Atlanta Braves Holdings (BATRK): $9 million


Recent Changes To The Portfolio

A comparison of recent filings reveals where Buffett is trimming or enhancing Berkshire's stock holdings. Form 4 shows several liquidations of Bank of America, reducing the portfolio's share count to about 864 million shares as of September 4, from more than 1 billion on June 30, 2024.

During the second quarter, Berkshire Hathaway also sold 389 million shares of Apple and exited positions in Paramount Global (PARA) and data warehouse provider Snowflake (SNOW). Additionally, Berkshire reduced its holdings in Chevron, Capital One Financial, Floor & Décor Holdings and T-Mobile.

Also in the quarter, Berkshire opened new positions with Ulta Beauty and aerospace parts provider Heico. Additionally, the conglomerate increased its ownership of Occidental Petroleum with the purchase of 7.2 million shares. Berkshire now owns more than 25% of the oil and gas company.

Berkshire also shuffled around its Liberty Media and Sirius holdings in advance of the restructuring transactions that were implemented on September 9.

Why Is Warren Buffett Known As One Of The Best Investors?

Buffett started investing when he was 10 years old and took the helm at Berkshire Hathaway when he was 35. At the time, Berkshire was a textile manufacturer. Today, in Buffett's 94th year, Berkshire Hathaway is a diversified holding company and S&P 500 constituent worth nearly $1 trillion. Buffett himself is worth an estimated $142 billion.

He has documented his time at Berkshire with annual letters to the company's shareholders. Some of Buffett's most memorable quotes have come from these letters, mixed in among his updates on different areas of the business. He also includes a running annual comparison of Berkshire's market value growth and the growth in the S&P 500. There isn't a consistent winner every year, but there is a clear winner over time.

Between 1965 and 2023, Berkshire Hathaway grew at a compound annual rate of 19.8%—nearly double the S&P 500's 10.2%. While other investors have beaten the market by wider margins, none have done it for as long as Buffett has.

He has proven, repeatedly, that investors don't have to trade heavily or time the market to create wealth. The approach can be so much simpler: Buy good companies at value prices and hold them indefinitely. In this strategy, compounding does the heavy lifting to create outsized gains over time.

Bar, For LT buy / hold discipline, it also helps to have mountains of built up cap gains, as you have. That way it would be too costly to sell and pay the tax, so the incentive is to contiunue to hold, So the gains compound, and you have a $ machine. Buffett talks about the power of compounded returns over time being the key to wealth building -







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I'm a Nervous Nellie too. That's one reason I spend so much time studying investments. Fact is, most In and Out traders will get the in and Out backwards. Studies have shown that.

I can't remember the last time Index funds did terribly, My system works VERY well.

Bar, >> too much in fixed income <<

Yes, the LT return of bonds is dwarfed by the S+P 500, but having those relatively safe bonds reduces overall volatility, and thus prevents the need for as much Tagamet. So they serve an essential role if it allows an investor to 'stay the course' on the stock side.

Fwiw, I have a 50% allocation in bonds (3 year T-Note ladder), and the stability it provides makes it possible to maintain the stock allocation. Unfortunately the bond returns after inflation will be minimal, but without those bonds I wouldn't be able to stomach the stock allocation angst.

I'm a nervous nellie though, and the 25% allocation I have in stocks is a constant worry. Buffett and Peter Lynch both said that if a 20% or 30% drop in the stock market would keep you up at night, you shouldn't be in the stock market. I'm more comfortable with the 'hit and run' approach, grabbing the profits when they build up, and then retreating to the safety of cash. That's something you have to change though, to get the LT benefit of owning stocks. Fwiw, the last 5 years have been so choppy, the 'in and out' approach has actually done better than buy / hold, but that performance isn't likely to be repeated.



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Absolutely GFP, Professor Terrance Odean at Berkeley (Retired now) called the index fund the greatest invention for the average investor. I've never had any reason to doubt that. It looks like that will be true again in 2024.

My biggest investing mistake was having too much in fixed income stuff mainly muni bonds.

Jack Bogle discusses asset allocation -







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Bar, Yes, using the S+P 500 saves a lot of time researching individual stocks. Buffett says he reads 500 pages of info per day, mostly stock related, so not having to do that would free up a lot of time.

Btw, SPLG has an ultra low expense ratio --> 0.02% vrs 0.09% for SPY, so even lower than VOO or IVV (both 0.03%). The downside is the daily volume is lower so it's bid/ask spread is wider. So SPY is used more by active traders, and SPLG for LT buy / hold.

A nice aspect with the S+P 500 index is you get the Mag 7 side, but in lower amounts than with the QQQ. And you also get everything else, so all bases are covered. Then just add a group of favorite individual stocks, and the stock allocation is complete. We owe a debt of gratitude to Jack Bogle -






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Looks like few things are beating plain jane S&P 500 index funds so far in 2024. Small caps and even mid caps are doing much worse. I had to look up SPLG

Bar, OT - Plant based protein fizzled as an investment fad, but using more plant protein as a substitute for animal protein is still destined to increase based on demographics. With over 7 bil people on the planet, there just isn't enough animal protein to go around. Large food companies already use tons of soy protein in their processed products, also pea and oat protein, but most of that is to improve texture, and not for the nutritional benefit of the protein.

Replacing animal protein with fungi (mushrooms) and algae protein seems like a promising area (Meati Foods). Not that I'd invest in it, but it's interesting. A really wild approach is 3-D printed food protein (Steakholder Foods - STKL), but unsurprisingly the stock has bombed out. Hopefully the ultimate answer isn't 'Soylent Green', yikes.

But investment-wise, you are right to avoid these areas. While they are intriguing, better to follow Buffett and go with the junk food stocks like McDonalds, Pepsico, Mondelez, and for dessert maybe stop at Dairy Queen :o) And for the resulting obese and sickly public, add in some Big Pharma drug stocks, and then some Service Corp Intl (funeral services).



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How can you not see the problems with foreign junk like BABYF. That stock showed up when "fake food" was very briefly a hot stock fad. I remember when Beyond Meat shares traded around $100. It's now about $3.50. At one time, the IHUB Babyf board was wall to wall shills.

Bar, OT - >> Else Nutrition

200 is crazy but you know that. I'm at 20 individual stocks and holding. They're mostly mega caps such as BRK so they're themselves nicely diversified in many cases. Plus I have SPY, IJH a mid cap fund and the Vanguard Total Market Index Fund that I've had for perhaps 35 years and another mutual fund that's nearly that old.

Also still have some muni bond funds. What I don't want are small caps or a fund of small caps, and certainly no microcaps. My kids both own QQQ but not me.

IHUB Junk like BABYF nauseates me. Certainly have no crypto, although my CPA son has small amount. Some he got free when he opened a Robinhood acct several years ago. I think he just wanted the RH app

>>> Chubb Limited (NYSE:CB)

https://finance.yahoo.com/news/chubb-limited-cb-best-cash-174408177.html

Operating Cash Flow (TTM): $14.8 billion

Chubb Limited (NYSE:CB) ranks third on our list of the best cash-rich stocks that pay dividends. The insurance company offers a wide range of related products and services to its consumers. Insurance stocks are notable for their robust pricing power, which remains strong regardless of economic conditions. After catastrophic losses, insurers can raise premiums, and even when claims are lower, they can justify increases by highlighting future risks. In essence, insurers function as reliable, profit-generating entities.

Chubb Limited (NYSE:CB) stands out due to its focus on high-income customers, particularly in the homeowner insurance sector. Wealthier individuals are less likely to change their spending habits or default on bills and premiums during mild economic downturns, offering greater stability for the company. In the third quarter of 2024, the company reported a net income of $2.32 billion, which showed a 13.8% growth from the same period last year. The stock has returned by over 21% since the start of 2024.

In Q3, Chubb Limited (NYSE:CB) reported an operating cash flow of $4.55 billion, and its trailing twelve-month operating cash flow comes in at $14.8 billion. This solid cash position has allowed the company to raise its payouts for 31 consecutive years. Its quarterly dividend comes in at $0.91 per share for a dividend yield of 1.32%, as recorded on December 16.

The London Company made the following comment about CB in its Q3 2024 investor letter:

Initiated: Chubb Limited (NYSE:CB) – CB engages in the provision of commercial and personal property and casualty insurance, personal accident and health (A&H), reinsurance, and life insurance. While the company is headquartered outside the U.S., roughly 2/3 of its profits are generated in the U.S. with Asian markets representing another 20% of earnings. CB has a portfolio of top-performing, multibillion-dollar businesses that have substantial scale and yet potential for growth. CB has a culture of superior underwriting discipline, and management has a strong track record of expense control. CB also has a well-balanced mix of business by customer and product, with extensive distribution channels. We are attracted to CB’s globally diversified business model, superior underwriting and expense management, consistent and best-in-class profitability, upside potential from growth in Asia, and the potential to benefit from higher interest rates in its investment portfolio.

As per Insider Monkey's database of Q3 2024, 51 hedge funds held stakes in Chubb Limited (NYSE:CB), growing from 46 in the preceding quarter. These stakes are worth over $10 billion in total. Warren Buffett’s Berkshire Hathaway owned the largest stake in the company, valued at $7.8 billion.

Overall CB ranks 3rd on our list of the cash-rich dividend stocks to invest in now. While we acknowledge the potential of CB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Bar, OT - >> S+P 500 <<

I've been using the S+P 500 ETFs (VOO, SPY, IVV, SPLG). Using four makes it easier to take occasional profits without getting into complicated cost basis calculations on partial positions, etc.

Previously I had been using the S+P 500 ETFs for half of the stock allocation, and individual stocks for the other half. But the S+P 500 is so simple, it seemed like a better way to go, and is what Buffett recommends for most investors. Being a 'collector', I had trouble limiting the number of individual stocks, and ended up with way too many to follow. Your approach of using the index, plus maybe 15 - 20 individual stocks would make a lot of sense, but I got carried away and ended up with over 200 stocks, lol. Nice LT stocks, but --> 'too much of a good thing' :o)

Fwiw, here was the full list (link below, see I-Box). I started with 20, then went to 50, then 100, and before long there were over 200. Only small positions in each, but it got out of hand. Part of the rationale was to make it too cumbersome to sell, and thus ensure long LT buy / hold. Using only the S+P 500 index makes it too easy to take profits, but I guess no system is perfect. I always have the urge to grab profits as they build up, which has actually worked well in recent years with the choppy market, but the better strategy to just sit tight, as you've been doing for decades.


https://investorshub.advfn.com/5G-Telecom-Sector-37555

(Note - the stocks with a blue rectangle designation to the right were fairly deep 'turnarounds', but I've modified that strategy to stocks only down by 10-15%, since these usually recover much faster and more predictably. Buffett said he avoids deep turnarounds since they don't usually turn around).



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"Fwiw, I've been mainly using the S+P 500 for the stock allocation,"

GFP, are you using a fund for your S&P allocation or individual S&P 500 stocks? From a quick glance, it looks like the S&P is having an excellent year in 2024 but all size caps are doing okay with the exception of microcaps which are lagging as often happens with them.

Bar, I figure Heico is probably a Weschler / Combs pick, since it's a small position. But it's been a nice performing stock over the long term. Currently down over 15% from the Nov high, so could be a good buying opportunity.

A lot of stocks were oversold even before the recent dive, so looks like many bargains out there. Fwiw, I picked up a little Chubb today, which was Buffett's 'mystery stock' from earlier in the year. In the insurance broker sub-sector I also picked up some Marsh & McLennan (MMC), which had been a Berkshire holding a few years ago, and also some Arthur J. Gallagher (AJG). Both have been great long term performers, with phenomenal LT charts. Progressive (PGR) is another great one, and a key competitor to Geico.

Fwiw, I've been mainly using the S+P 500 for the stock allocation, but with so many great stocks getting hit it's hard to resist :o) It will be interesting to see if Buffett starts deploying some of that mountain of cash soon. Looks like he picked up more OXY, which was down to 45 yesterday, so a bargain compared to a few months ago. Not much of a pullback for Apple though, with an all time high today.



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Correct symbol for the HEICO issue BRK owns is HEI.a

I didn't know or forgot that BRK owns some Heico. But you're right. According to the Berkshire Portfolio Tracker, BRK owns $195 million in HELA or about 0.1% of BRK's portfolio. I always wonder why Buffett has a number of such trivial positions. Their smallest holding by far is $8 million in Atlanta Braves shares, BATRK

https://www.cnbc.com/berkshire-hathaway-portfolio/

Berkshire Hathaway bought another $409 Million in shares of Occidental Petroleum as the stock hits new multi-year lows
By: TrendSpider | December 20, 2024

• Buffett goes Christmas Shopping

Berkshire Hathaway bought another $409M in shares of Occidental Petroleum as the stock hits new multi-year lows.



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Berkshire Hathaway Currently Down Eight Consecutive Days, on Pace for Longest Losing Streak Since December 2018
By: Dow Jones Market Data | December 17, 2024

• Berkshire Hathaway Inc. Class B (BRKB) is currently at $454.18, down $1.01 or 0.22%

• Would be lowest close since Nov. 5, 2024, when it closed at $445.06
• Currently down 12 of the past 13 days
• Currently down eight consecutive days; down 3.48% over this period
• Longest losing streak since Dec. 24, 2018, when it fell for eight straight trading days
• Worst eight day stretch since the eight days ending Nov. 4, 2024, when it fell 3.98%
• Down 5.97% month-to-date
• Up 27.34% year-to-date; on pace for best year since 2021, when it rose 28.95%
• Down 5.98% from its all-time closing high of $483.08 on Nov. 27, 2024
• Up 25.53% from 52 weeks ago (Dec. 19, 2023), when it closed at $361.80
• Down 5.98% from its 52-week closing high of $483.08 on Nov. 27, 2024
• Up 27.81% from its 52-week closing low of $355.35 on Dec. 20, 2023
• Traded as low as $452.06; lowest intraday level since Nov. 5, 2024, when it hit $441.10
• Down 0.69% at today's intraday low

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Bar, Yes, the idea of him buying the entire company (Boeing) would seem like a non starter for sure. Even a much smaller stake would seem unlikely. A Bloomberg article mentioned the possibilty, in part because of Boeing's strong 'brand', and the wide moat with commerical airliners and limited competition (only Airbus). But better to stick with insurance companies and the like, something like Chubb, which Berkshire has taken a stake in, although the market cap is $111 bil so would be a 'whopper' size acquisition. So not likely, but would be more up Buffett's alley.

I remember him saying that he overpaid for the big Precision Castparts acquisition, and would probably not have done it in retrospect. OXY has been the big one in recent years, although he agreed to remain under 50% ownership.

At 94 you have to wonder how long before he passes the baton off to Able and the others. Then it gets tempting to start spinning off portions of the conglomerate to 'maximize value', and then Berkshire splits up like GE did.



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"rumors Buffett might buy Boeing." There's zero chance BRK would even consider buying BA. Fixing profoundly troubled tech or manufacturing companies isn't what Buffett does. It's way outside his or Berkshire's "circle of competence." He seeks acquisitions that can be fixed quickly merely by pumping in mountains of cash. That's what Buffett can do, and without even consulting a board of directors. He can do it after thinking it over for perhaps one day. That's BRK's strength. In that situation they phone Warren first.

I'll point out too that Precision Castparts has had some rocky stretches.

More on Heico -

(Note - this article sounds like it was written by an AI bot, and the SpaceX comparison seems bogus, but here's the article anyway) -


>>> Warren Buffett Just Bought A $185,373,840 Stake in This Little-Known SpaceX Competitor


AG Plus

by Caleb Naysmith

Oct 31, 2024


https://www.agplusinc.com/news/story/29331446/warren-buffett-just-bought-a-185-373-840-stake-in-this-little-known-spacex-competitor#:~:text=Buffett's%20Berkshire%20Hathaway%20(BRK.,in%20the%20conglomerate's%20extensive%20portfolio.


In a surprising shift toward the aerospace and defense sector, legendary investor Warren Buffett has unveiled a new position in HEICO Corporation (HEI), an established aerodefense contractor and emerging competitor to Elon Musk's SpaceX. Buffett's Berkshire Hathaway (BRK.A)(BRK.B) purchased 1,044,242 shares of HEICO, valued at approximately $185.37 million, marking a 0.07% weighting in the conglomerate's extensive portfolio.

HEICO Corporation: A Silent Giant in Aerospace

Founded in 1957, HEICO Corporation has quietly become a powerhouse in the aerospace, industrial, defense, and electronics industries. The company's commitment to innovation and cost-effective solutions has made its products indispensable components in large commercial, regional, business, and military aircraft. Beyond aviation, HEICO's technology extends to industrial turbines, targeting systems, missiles, and electro-optical devices.

Operating through its Flight Support Group and Electronic Technologies Group, HEICO has positioned itself at the forefront of technological advancements, offering essential solutions across multiple industries. With a market capitalization of over $29 billion and a year-to-date stock price increase of 34.77%, the company has demonstrated robust growth and resilience in a competitive market.

Buffett's Strategic Entry into Aerospace

Buffett's investment in HEICO represents 0.75% of the company's outstanding shares, signaling a significant endorsement from one of the world's most respected investors. This move aligns with Buffett's long-standing strategy of investing in companies with strong fundamentals and growth potential.

The aerospace and defense sector has been gaining investor attention due to increasing global security concerns and the resurgence of air travel post-pandemic. HEICO's diversified portfolio and consistent performance make it an attractive investment for Berkshire Hathaway, known for its cautious yet opportunistic investment approach.

Competing with SpaceX: The New Frontier

HEICO's expansion into areas overlapping with SpaceX's domain adds an intriguing layer to this investment. While SpaceX has been a pioneer in commercial space exploration and satellite deployment, HEICO's advancements in aerospace technology position it as a formidable competitor in certain segments.

HEICO's expertise in electro-optical devices and missile components could play a pivotal role in the burgeoning space defense sector. As nations and private entities race to establish a foothold in space, companies like HEICO are essential in providing the technology and components that make these endeavors possible.

Buffett's investment could be seen as a strategic move to capitalize on the growing opportunities in space-related industries without directly investing in private companies like SpaceX. By backing HEICO, Buffett gains exposure to the sector's potential upside while relying on a company with a proven track record and established market presence.

Other Notable Moves by Buffett

In addition to the HEICO investment, Buffett's recent portfolio adjustments reflect a mix of consolidation and strategic diversification:

New Positions: Berkshire Hathaway acquired a 1.45% stake in Ulta Beauty (ULTA), signaling confidence in the retail beauty sector.

Exits: The conglomerate sold its entire holdings in Snowflake (SNOW) and Paramount Global (PARA). Both companies have faced significant stock declines this year, with Snowflake down 42% and Paramount down 25% year-to-date.

Adjustments: Buffett trimmed 50% of his stake in Apple (AAPL) and reduced his position in Capital One (COF) by 21.27%. Conversely, he increased his holdings in Occidental Petroleum (OXY) by 2.93%, now owning 27.86% of the company, highlighting a bullish stance on the energy sector.

Implications for Investors

Buffett's investment in HEICO underscores a growing interest in the aerospace and defense industries, particularly companies that stand to benefit from increased demand for advanced technology in both commercial and defense applications. His move may prompt investors to re-evaluate the sector's potential, especially as global dynamics shift toward heightened security and technological innovation.

The indirect competition with SpaceX adds a compelling narrative to HEICO's growth prospects. While SpaceX dominates headlines with ambitious projects like Mars colonization and satellite internet services, HEICO's steady advancements in aerospace technology represent a more understated but equally significant contribution to the industry's evolution.

Conclusion

Warren Buffett's new position in HEICO Corporation reflects a strategic investment in a company poised to capitalize on the expanding aerospace and defense sector. By aligning with HEICO, Buffett not only reinforces his investment philosophy of choosing fundamentally strong companies but also positions Berkshire Hathaway to benefit from the industry's future growth.

The move signifies confidence in HEICO's ability to compete in a landscape that includes formidable players like SpaceX. As the race for space and advanced aerospace technology accelerates, HEICO's role as a key component provider could yield substantial returns, validating Buffett's investment decision.

For investors, Buffett's latest moves offer insights into sectors that may offer growth opportunities amid market volatility. As always, his portfolio adjustments are closely watched indicators of potential shifts in market dynamics, making HEICO a company to watch in the coming years.

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Bar, In addition to Precision Castparts, Berkshire now also has some Heico, which is also in the broader Aerospace & Defense category. Fwiw, I've had Heico in my 'Best Long Term Stocks' portfolio for some time, based mainly on its nice 10-15 year chart. Berkshire's position isn't very large, so it might be a Weschler / Combs pick (?), but seems like a solid LT stock -


>>> Buffett Favorite Heico Reports Increased Revenue Despite Unit Sales Drop


Investopedia

by Bill McColl

August 27, 2024


https://www.investopedia.com/buffett-favorite-heico-reports-increased-revenue-despite-unit-sales-drop-8701903


Key Takeaways

Aircraft parts and electronics supplier Heico posted higher revenue despite a drop in sales at its Electronic Technologies Group unit. Fiscal third-quarter sales at Heico's Flight Support unit set a record high.

Investing guru Warren Buffett is a fan of Heico, adding the stock to his Berkshire Hathaway portfolio in the second quarter.

Shares of Warren Buffett-backed Heico (HEI) edged higher Tuesday after the aircraft parts and electronics supplier posted better-than-expected third-quarter profit despite declining Electronic Technologies Group sales.

Heico reported that fiscal 2024 third-quarter revenue rose 37% year-over-year to a record $992.2 million, a tick below analysts' consensus estimate of $992.7 million compiled by Visible Alpha. Earnings per share (EPS) of 97 cents came in above forecasts of 91 cents.

Sales in the Electronic Technologies Group declined 1% to $322.1 million. The company said the drop "principally reflects lower other electronics and medical products net sales." At the same time, Heico's Flight Support segment sales jumped 68% to an all-time high of $681.6 million.

Acquisitions Credited With Boosting Results

Heico Chief Executive Officer (CEO) Laurans Mendelson said that along with gains in the Flight Support group, the company's latest results were boosted by "strong contributions from our fiscal 2023 and 2024 acquisitions."

Heico shares, which hit a record-high $258.84 on Aug. 15, edged higher to $246.70 as of 1:15 p.m. ET Tuesday. They are up about 38% this year.

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👍. Agreed. I think he let some of the youngins pick to test their competency.

Bar, Boeing has the new CEO, and things will ultimately be turned around, but it looks like a long slog. There were some rumors that Buffett might conceivably buy Boeing, but that seems unlikely. Berkshire has Precision Castparts, a supplier to Boeing, but best to stay out of the aviation industry imo, other than maybe in the defense related areas since those companies have quasi monopolies. My dad was an aero engineer and project manager with GE when they had a space division, and back then Boeing was a stellar company, the absolute best. They'll get back to that level again, but will take time and a total re-dedication to quality.


>>> Boeing’s turnaround was always going to be hard. The failed union vote just made it even tougher


CNN

by Chris Isidore, Vanessa Yurkevich

October 24, 2024


https://www.cnn.com/2024/10/24/business/boeing-strike-offer/index.html


Problems at Boeing go back years, if not decades. And they just got a lot harder to fix.

In addition to the spate of safety incidents that has undermined the company’s public image, raised worries about quality, sparked numerous investigations and led to a shakeup of executives — including a brand new CEO — the aircraft manufacturer is battling a costly and lengthy strike at its Washington state factories.

Members of the International Association of Machinists just rejected Boeing’s offer to return to work after a bruising six weeks of strike action.

The strike is costing the company around $1 billion a month, according to an estimate from Standard & Poor’s.

Boeing this week reported a $6 billion third-quarter loss, one of the largest quarterly losses in the company’s history.

Boeing also warned investors that losses will continue for at least another year.

New CEO Kelly Ortberg said ending the strike — which has brought Boeing’s commercial airplane production to a near halt — was a top priority and a key to fixing its financial problems.

But with 64% of IAM members voting no on the company’s latest offer, getting a once-great American company back on track appears harder than ever.

Emphasis on profits proves costly

Problems with the quality and safety of Boeing’s planes have been well documented over the past five years. Numerous company whistleblowers and outside analysts say those problems came from Boeing cutting corners and putting speed of production ahead of quality and safety.

Now it appears that demands the company made during good financial times that its largest union forfeit a pension plan or risk losing their jobs is spurring backlash from employees and fueling a longer, costly strike.

The offer rejected in Wednesday’s union vote would have provided striking workers with an immediate 12% wage increase, another 23 percentage points of wage hikes over the next four years, a $7,000 bonus upon ratification and improved contributions to their 401(k) plans, as well as some job security guarantees.

But it did not restore the traditional pension plan that union members at the company lost 10 years ago, back when the company was threatening to build new nonunion factories to handle much of their future work. That loss, from when the company was doing well financially but wanted even more from its workers, still feeds an anger that was apparent in the vote.

“This membership has gone through a lot,” Jon Holden, president of the IAM’s largest local at Boeing and its chief negotiator, said at a press conference late Wednesday just after the vote was announced. “There are some deep wounds that were (caused by) some takeaways and concessions, threats of job loss. Our members haven’t forgotten that.”

Why traditional pension plans matter

Traditional pensions are what’s known as defined benefit plans. They pay a set amount every month to retirees or their spouse as long as they live.

Boeing union members are angry they lost their pension plan. They’re not likely to get it back

If the assets in the plan lose value due to the market or other problems, it’s up to the company to fill the gap. A 401(k) plan, known as a defined contribution plan, puts the investment risk on the retiree. Retirees can even outlive their assets.

The desire to shift risk onto employees and away from a company’s bottom line has led most private sector defined benefit plans to vanish over the last 45 years. Defined benefit plans are only available to about 8% of workers at US businesses today, according to data from the Employee Benefit Research Institute, down from 39% in 1980.

Traditional pension plans are “one of the hallmarks of retirement security,” Holden said Wednesday night. “It wasn’t right to take it away. It’s a righteous fight to try to achieve it back.”

And the loss of the pensions was one of the main things that rank-and-file members pointed to when explaining why they voted no.

“I would love to have my pension back. I’m bitter about it. We’re all bitter about it,” Nataleen Anderson, a 17-year Boeing employee, told CNN affiliate KIRO in Seattle. “It felt like, well, they stabbed us. I was too far into my career when they took it to be able to build a good 401(k). I have a son here too. I want him to have something when he leaves.”

Tough road to win back pensions

But no union that has lost a traditional pension plan has ever been successful in negotiating a return of the plan. The United Auto Workers union also lost the plans for workers hired at General Motors, Ford and what was then known as Chrysler since 2007.

When it went on strike against GM, Ford and Chrysler successor Stellantis a year ago, one of its demands was a return of those pension plans. But while it won record contracts from all three automakers, it did not win back the pensions. In a press conference during the strike Ford CFO John Lawler called the traditional pension plans being sought by the union “a plan of the past.”

Those three auto companies were reporting record profits. Boeing, however, has reported core operating losses of $39.3 billion since 2019, after two fatal crashes of its 737 Max caused a 20-month grounding of its best selling plane and a losses in almost every quarter since then.

Boeing flatly ruled out a return of the pension plans in a statement last week ahead of the offer that the union members just rejected.

“There is no scenario where the company reactivates a defined-benefit pension for this or any other population,” said the company on October 15. “They’re prohibitively expensive and that’s why virtually all private employers have transitioned away from them to defined-contribution plans.”

Is there a solution?

Holden wouldn’t rule out reaching a deal that doesn’t include a traditional pension plan, saying the company is open to try a hybrid plan that provides some kind of defined benefit for members. But he said so far in negotiations Boeing hasn’t entertained any kind of return to a pension plan.

“If they’re not willing to give it, then we have to get something that replaces it,” he said. “So it does come down to wages, it comes down to 401(k) plans. It does come down to potential other defined benefit options, which we are willing to do. We’re going to put all cards on the table, be creative.”

”We are disappointed in the vote result,” Boeing told CNN in a Thursday statement.

On Wednesday before the vote results, Ortberg, who only assumed Boeing’s CEO job on August 8, said that ending the strike was “first and foremost on everybody’s mind.”

The company needs a fundamental change in its culture, he said when reporting third-quarter results but before the final tally of votes, and he again said he wants to “reset” the relationship between the union and the company. But he also admits that change in culture, which he didn’t spell out, will be difficult and take years to achieve.

“We’re clearly at a crossroads. The trust in our company is eroded,” he said. “We’re saddled with too much debt. We’ve had serious lapses in our performance across the company, which has disappointed many of our customers. We have employees who are thirsty to get back to the iconic company they know.”

That small Ulta holding is odd. One reason BRK has done so well is because Buffett trades so little and makes no effort to time the market. I do about the same and have holdings that go back many decades especially my index funds and some fabulous blue chips like Cintas and Rockwell Automation.

Most IHUB investors trade way too often, plus they buy junk. The small amount of Boeing I have is from a spinoff from Rockwell International over 20 years ago.

Generally, most investors would do far better if they held stocks longer. That's assuming they aren't buying the usual IHUB penny rubbish. There's plenty of academic research on that point.

Titan, ULTA was probably another Weschler / Combs pick. With Buffett now 94, the new guys will have some big shoes to fill. The jury is still out on how well their stock picking abilities stack up, but still early.



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GFP, Buffett said he believed the airlines (all of them) would require huge government bailouts due to covid and Trump wouldn't want to bail out four enterprises closely associated with Buffett. Thus he made a quick U-turn to help the airlines survive.

Have you noticed how well Boeing stock is doing over the past few week? My engineer son is still fully employed there. He should get an annual bonus but I I haven't heard either way. Personally, I still hold some BA shares and have a nice profit in them going back decades.

Luckily my son gets most of his stock compensation in index fund shares, not BA shares. Main thing is my son is still fully employed there.

His purchase/then sale in Ulta Beauty is confusing, but he's entitled to a mistake occasionally. ✌️

Bar, >> he bought those four major airline stocks at the beginning of covid in 2020 <<

Buffett actually was in those airline stocks for some time before Covid appeared (article below), but then sold them in April 2020, right near the bottom, so in retrospect not the greatest timing. But who knew that Covid would come along out of the blue, and also that the fast recovery in the airline stocks would happen? With Barrick Gold, that was a big surprise, but was most likely a Weschler / Combs pick, and they exited the position within a few quarters.


>>> Warren Buffett's Berkshire Hathaway missed out on $5 billion by selling the 'big 4' airline stocks


Business Insider

Theron Mohamed

Mar 18, 2021


https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-missed-5-billion-selling-airline-stocks-2021-3-1030224860


Berkshire Hathaway sold its stakes for about $4.5 billion after the pandemic struck.

The shares would have been worth around $9.4 billion today.


Warren Buffett's Berkshire Hathaway missed out on $5 billion by exiting the "big four" US airlines last April.

The famed investor's company previously owned between 8% and 11% of American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines. Berkshire spent a total of $7 billion to $8 billion in building those stakes, which were worth over $10 billion at the end of 2019, SEC filings show.

However, shares in the four airline stocks plunged with the broader market when pandemic fears peaked last spring. Buffett and his team dumped their stakes in April, likely netting about $4.5 billion based on the quartet's average trading prices that month.

Berkshire probably stomached a loss of $2.5 billion to $3.5 billion as a result. The airline stocks have bounced back since then, meaning the conglomerate's former positions would be worth a combined $9.4 billion today — more than double their value when Buffett sold them.

Buffett famously says that his "favorite holding period is forever," and advises investors to "be greedy when others are fearful." If he had practiced what he preached, Berkshire would have avoided a significant loss and notched a solid gain on its airline investments.

To be fair, Buffett decided to exit the airlines based on the information available to him last spring. He couldn't have known that multiple COVID-19 vaccines would be developed in record time, paving the way for travel to resume and the global economy to reopen this summer.

Moreover, Buffett invested in the airlines back in 2016 because he expected people would fly more in the coming years, the companies would at least maintain their value, and they would continue buying back shares.

When he sold in April, it was unclear how long it would take passenger numbers to recover from the pandemic. The carriers had accepted government bailouts that restricted buybacks, required them to hand stock warrants to the US government, and left them on the hook for billions of dollars in loan repayments. At least two were pursuing equity raises that would dilute existing shareholders as well.

"The world has changed for the airlines," Buffett said at Berkshire's annual shareholder meeting last year. "The future is much less clear to me."

The investor may have missed a trick in hindsight, but it's hard to fault his thinking at the time.

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BTW, I follow IHUB for the scams which are tons of fun to follow. Years ago I'd contact the SEC to try to shut some of them down and was often successful in doing that. IHUB is mostly a sleazy casino. Many of the inhabitants are addicted to penny stock trading and have little interest in making a long term profit. They're here for the extremely rare 100-bagger. Very few have any real money. For such, penny stocks are just like a lottery or slots. I share Buffett's utter disdain for gambling (he's talked about that a few times)

Among pennyland regulars, divorces and even suicides have occured here and on similar boards. I never buy penny stocks, never buy anything with a market cap under about $10 billion. Never buy any unlisted stocks. I started following online stock boards around 1995. During the Dot Com crash of 2000, many players lost everything.

My portfolio of about 20 stocks and several funds is intended to survive in good times and bad. Hence, I hold rock solid stocks with strong finances like BRK.

Berkshire Hathaway Inc. (BRK.B) Is a Trending Stock: Facts to Know Before Betting on It
By: Zacks Investment Research | December 13, 2024

Berkshire Hathaway B (BRK.B) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this company have returned -1.9% over the past month versus the Zacks S&P 500 composite's +1.3% change. The Zacks Insurance - Property and Casualty industry, to which Berkshire Hathaway B belongs, has lost 2.2% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings Estimates

Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Berkshire Hathaway B is expected to post earnings of $4.43 per share, indicating a change of +13% from the year-ago quarter. The Zacks Consensus Estimate has changed +11.2% over the last 30 days.

The consensus earnings estimate of $19.78 for the current fiscal year indicates a year-over-year change of +15.1%. This estimate has changed +0.9% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $19.97 indicates a change of +1% from what Berkshire Hathaway B is expected to report a year ago. Over the past month, the estimate has changed +0.3%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Berkshire Hathaway B.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth Forecast

While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Berkshire Hathaway B, the consensus sales estimate of $88.3 billion for the current quarter points to a year-over-year change of -5.4%. The $364.82 billion and $375.35 billion estimates for the current and next fiscal years indicate changes of +0.1% and +2.9%, respectively.

Last Reported Results and Surprise History

Berkshire Hathaway B reported revenues of $93 billion in the last reported quarter, representing a year-over-year change of -0.2%. EPS of $4.68 for the same period compares with $4.96 a year ago.

Compared to the Zacks Consensus Estimate of $96.62 billion, the reported revenues represent a surprise of -3.75%. The EPS surprise was -2.7%.

Over the last four quarters, Berkshire Hathaway B surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.

Valuation

Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Berkshire Hathaway B is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom Line

The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Berkshire Hathaway B. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Read Full Story »»»

DiscoverGold

BRK Is a good first stock because Buffett (and Munger before him) would often explain their stock transactions. Why did he buy? Why did he sell? And sometimes, why did he do nothing. Occasionally Buffett makes puzzling moves such as when he bought those four major airline stocks at the beginning of covid in 2020. Buffett had lost money in airlines before and he often spoke out against that sector. Eventually he explained those airline trades for those who paid attention.

Similarly, observers were stunned when the boys picked up a small chunk of Barrick Gold which they sold a few months later for a nice profit. Munger especially often made fun of gold as an investment. That's one trade they never explained, as far as I know.

A curious investor can learn a lot from BRK which is why I follow their moves. I usually listen to broadcasts of the full May SHM.

So, for the educational value I regret not picking up some BRK shares for my kids. Note that my youngest son is a CPA with a university degree in finance as well.

I've held BRK.b for decades, apparently we're just beginners. Have a good day. 🍷

Is BRK a "beginner stock" (whatever that is) ?

Why Berkshire Hathaway (BRK-B) Is the Best Beginner Stock to Invest in Now

"We recently published a list of 11 Best Beginner Stocks To Invest In Now. In this article, we are going to take a look at where Berkshire Hathaway Inc. (NYSE:BRK-B) stands against other best beginner stocks to invest in now."

https://finance.yahoo.com/news/why-berkshire-hathaway-brk-b-190705540.html

Greg Abel would not likely leave in any spinoff, which I doubt would happen. He is designated to become CEO upon Warren's death.

"if BRK's shares drop after Warren passes, it will be a huge buying opportunity."

I don't think BRK would drop much. Plenty of analysts believe BRK will eventually begin paying dividends like the vast majority of profitable large cap stocks. The original first or second generation gang of friends and family from Omaha in the 1960s -- mostly billionaires now and in no need of dividends -- are mostly gone. Plenty of investors are like me in that they prefer tax managed stocks that favor capital gains and pay low or no dividends.

Dividends are some proof a company is doing well and because paying them regularly is a minor check on management. If BRK plummets on Buffett's death, shares could be propped up by initiating paying dividends or by spinning off assets, perhaps BHE, the energy division with Greg Abel at that helm.

As Buffett has often mentioned, a shareholder can always sell off some of his shares if cash is needed. That gives him, not the company, control of when income is received and taxes are payable.

Ted Weschler and Todd Combs were hand-picked by Warren to fill those shoes and work with the company under him to eventually take over the investments. They both love Omaha and have been immersed in the company. Todd Combs has actually served as CEA of some of BRK's operating companies. They were 2 of the top investment advisors around when Buffet brought them in. Warren has indicated he knows he is in the 4th quarter and will not be around much longer. I like to say I am on the back 9 but am in no hurry to get to the Clubhouse and like to play 14 and 15 over again.

Bottom line, IMO, is that if BRK's share price drops significantly after Warren passes, it will be a huge buying opportunity. The asset base and underlying intrinsic value are there.

With one "cure" I briefly followed, the "doctor" turned out to be a veterinarian... who specialized in COWs. He made a 7-figure salary. When the stock drops, which usually happens, you see lots of dumb averaging down. And down. and down...

And old geezer investors think they're doing something to cure disease when they buy those junk shares. Insiders and middle-men are making staggering salaries. Often 7 figures.

I don't tell my kids what stocks to buy but I explained to my one son how the drug testing can go on almost forever. There's always another round of testing.

And the boards are often wall to wall shills

Prudent Capitalist, That is amazing, imagine getting A shares for $1700. I remember when the B shares came out, and thinking that Buffett was getting too old, and he didn't like tech stocks, so I didn't invest in the B shares -- big mistake. He did finally take the tech plunge with the concentrated Apple position, which was a key source of gains over the past decade, but overall he's avoiding the Dot Com and Mag 7 crazes and still had phenomenal performance.

Fwiw, I'm still on the fence with Weschler and Combs, although it's still early. They have some gigantic shoes to fill, and it will be a sad day when the Oracle is gone. He's been a continuous presence for so many decades. Buffett gets most of the attention, but Munger was also a vital component to the magic that is Berkshire -







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Bar, Yes, biotech is a sector to avoid for sure. But as a young investor it has all the 'get rich quick' qualities, plus the cutting edge science attraction. But a very dangerous road. Luckily I (almost) never took large positions. One exception was with Dendreon and their early cancer vaccine (Provenge). I made $40 K on that gambit, but managed to lose that plus more on other ill conceived wagers. I actually had some Amgen when it was still a small company. It jumped from 12 to 17 so I gleefully took the profits, but decades later I figured out that tiny investment would be worth several hundred thousands $ today.

Anyway, that was the school of hard knocks, although I still follow the sector loosely out of general interest. But the moral of the story for young investors is to just dollar cost average into the S+P 500 every month. Let it ride, and when retirement time comes you will be fine. Maybe own some individual conservative stocks with 1/4 of the total stock allocation, but put the rest in a broad index and let time do its magic.



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I was talking on the phone to a client the day after the 87' crash and he mentioned he had just bought a share or 2 of Berkshire Hathaway for $1,700 per share. Yes, that is what a share was trading for the following morning after Black Monday. And, the B shares were not around then. You could buy 1 A share for $1,700 back then and those A shares are $705,815 right now here today.