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View Poll Results: BRK.B: buy or sell?
Buy now! 2 40.00%
Get out while the gettin's good! 3 60.00%
Voters: 5. You may not vote on this poll

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Old 12-29-2009, 10:24 AM   #1
lsejlowe
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Berkshire B stock split: buy now or reduce exposure?

Warren Buffet's recent announcement of his intent to split Berkshire Hathaway B stock 50 to 1 seems uncharacteristic for him. Trading around $3,200 per share currently, the split would make it a lot more affordable and it seems that it would attract a different style of investors. So what do you think, will the share price rise after the split (probably in early February) or is this uncharacteristic decision a red flag to get out now?
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Old 12-29-2009, 08:46 PM   #2
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I would not buy BRK-B at all, it does not seem wise to spend any money on such an overvalued stock even if it is BRK . As much as I'd hate to see the day It won't be as inflated after Mr Buffet passes away even if the leadership can replicate his success.

As always I would look for small undervalued stocks and or a large blue chip ETF index fund.
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Old 12-30-2009, 12:02 PM   #3
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Think I will hop out and buy about 10,000 shares...
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Old 12-30-2009, 01:15 PM   #4
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Quote:
Originally Posted by Not Inspiron View Post
I would not buy BRK-B at all, it does not seem wise to spend any money on such an overvalued stock even if it is BRK . As much as I'd hate to see the day It won't be as inflated after Mr Buffet passes away even if the leadership can replicate his success.

As always I would look for small undervalued stocks and or a large blue chip ETF index fund.
You think it's that overvalued? The nature of the stock being so high priced makes it less susceptible to option trading and other day trading that can make stock value yoyo. I agree that it will take a hit when Buffet is no longer involved in the company but I also think it will still be a very viable investment for a longterm gain.

Sure there are lots of other investment options, but I was curious to know what people thought of the announcement of the split.
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Old 12-30-2009, 02:39 PM   #5
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Quote:
Originally Posted by lsejlowe View Post
You think it's that overvalued? The nature of the stock being so high priced makes it less susceptible to option trading and other day trading that can make stock value yoyo. I agree that it will take a hit when Buffet is no longer involved in the company but I also think it will still be a very viable investment for a longterm gain.

Sure there are lots of other investment options, but I was curious to know what people thought of the announcement of the split.
I'm with Not. I think the PE is simply too high for current growth. You might see a short term blip from individual investors wanting to jump on the band wagon, but ultimately it'll be the larg investors and funds that will dictate the price and that'll bring it back pretty much where it is now.

I also feel the same way regarding the risk. I think you'll see a significant drop when Warren Buffet kicks the bucket. In my view, that will be the time to buy. Ultimately, that is still a very good long term company.
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Old 01-20-2010, 08:37 AM   #6
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should have bought at the end of december when it was hovering around $3385. It's jumped to $3390 in the last two days on news that the 50/1 split will be probably occur tomorrow.
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Old 01-20-2010, 09:34 PM   #7
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Quote:
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should have bought at the end of december when it was hovering around $3385. It's jumped to $3390 in the last two days on news that the 50/1 split will be probably occur tomorrow.
Im confused because typically the date of splits are announced well in advance and its for shareholders as of a certain date. And you don't typically get it if you buy the stock the day of the split because you have to consider the time it takes the trade to settle (T+3bdays). Maybe its just been too long since I had my Series 7.
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