100%?
The notorious
Readit NewsDeleted Comment
Deleted Comment
Dead Comment
Dead Comment
CharlieMunger commented on Ask HN: How to start learning about investments? · Posted by u/DeathArrow
Study the teachings of Warren Buffett and Charlie Munger.
There is a Reddit community for that: r/brkb
https://old.reddit.com/r/brkb/
Understand the concept of intrinsic value (versus market price).
Think of shares as "part of a business".
Watch the professionals at Berkshire Hathaway: what are they doing today?
CharlieMunger commented on The Berkshire Hathaway of the Internet (2017) awilkinson.medium.com/the... · Posted by u/absolute100
If you want to understand Berkshire Hathaway, join us on Reddit:
https://old.reddit.com/r/brkb/
We are the best Berkshire community on the Internet, with dozens of "value investor" moderators.
We get the facts right.
CharlieMunger commented on The Berkshire Hathaway of the Internet (2017) awilkinson.medium.com/the... · Posted by u/absolute100
The whole idea that BH is a success due to good deals is wrong. BH has made good deals and bad deals, but that's not the main reason for their long term track record.
BH has a good record because they have structured their business to have a permanent edge: Their insurance&reinsurance business (half of the business) generates cash and float constantly. The side of the company seeks ways to invest all that cash. Often buying whole businesses.
In other words, BH cuts out several levels of middlemen. They are an insurance company, holding company, private equity & alternative investment management company and investment fund rolled into one. Cutting out banks, private equity, fund managers bring in huge savings.
The reason why BH has not been outperforming SP500 in the last 10 years is that cash is cheap for everyone (this is the longest boom in history) Once the water level drops again and we see who swims naked, BH will outperform again.
You're getting the facts wrong. I'm sorry.
If you want to understand Berkshire Hathaway, join us on Reddit:
https://old.reddit.com/r/brkb/
You have a lot to learn, and you can start your learning journey TODAY!
At this point why are you not just buying BRK-B?
We do that, too. For example, one of those Redditors owns 22,612 BRK.B shares and has been buying since late 2002.
Berkshire spent $25 billion in 2020 (all of its operating earnings) on buybacks at an average price of $205 per BRK.B share. That buying continued at almost the same pace in 2021 and the average price paid is $220 per BRK.B share.
We can't buy at that buyback price today, but many of us would gladly pay, say, $250 per share for BRK.B.
https://youtu.be/bx5ThG6HyZk
He is widely respected and that is well-justified.