Just a quick note as a follow up to my May 16th article in which I indicated I had acquired 200 Class B shares (NYSE: BRK-b) for the FFJ Portfolio. The stock price has trended lower subsequent to my purchase but I see the company’s stock has popped in this morning’s pre-market trading and that my position is virtually flat. Up, down, sideways in the short-term….I don’t care. I invest for the long-term and am confident BRK’s stock price will be far greater several years into the future.
The reason for this sudden increase in BRK’s stock price? It was reported yesterday that BRK’s Board of Directors had announced the removal of a cap on stock buybacks. This now gives Messrs. Buffett and Munger greater leeway to parcel out profits if they are unsuccessful in their ongoing hunt for acquisitions.
Given this change in policy it makes me wonder…if these astute investors are having great difficulty in finding attractive investment opportunities for its cash hoard perhaps I am not totally out to lunch when I decide to pass on investing in many of the companies I look at because I view them to be richly valued.
Oh well, at the risk of offending any Trump supporters, I can only hope some of the crazy things he says/does will assist in providing investors with a healthy market correction.
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Disclaimer: I have no knowledge of your individual circumstances and am not providing individualized advice or recommendations. I encourage you not to make any investment decision without conducting your own research and due diligence. You should also consult your financial advisor about your specific situation.
Disclosure: I am long BRK.b.
I wrote this article myself and it expresses my own opinions. I am not receiving compensation for it and have no business relationship with any company whose stock is mentioned in this article.