Is it a no-brainer place to park some cash? Seems to be doing quite a bit better than VTI that so many recommend. What are your thoughts on it?
Post Reply
1 of 1
BRK.B
2,744 Views |
19 Replies |
Last: 2 yr ago by Burdizzo
I've owned BRK.B off and on for decades. I should have always been on as it beats the general market.lck90 said:
Is it a no-brainer place to park some cash? Seems to be doing quite a bit better than VTI that so many recommend. What are your thoughts on it?
I would say it's been my best long term investment.
so I'm a fan. I am concerned about what will happen when Warren Buffett passes.
BRK.B 20 year return 620%
The only bad time to buy BRK in my lifetime was 1997-1999. As long as your investment horizon is 10+ years, BRK will do its thing and compound, and it's never a bad time to buy BRK.
That said, for people who follow the company closely (like me) this is the closest that BRK has gotten to intrinsic value since the beginning of 2018 (I calculate current intrinsic value of the company at $375-$395). There will be a better time to buy in the next 1-2 years when the fed starts cutting rates again, and I haven't bought any shares since the fall of '22 (I am a consistent buyer of shares anytime the stock price is >20% below my calculation of intrinsic value).
Warren and Charlie have total confidence in Greg Abel (the anointed future CEO), so while it will be a dark day when Warren and Charlie pass on, I will continue to buy.
That said, for people who follow the company closely (like me) this is the closest that BRK has gotten to intrinsic value since the beginning of 2018 (I calculate current intrinsic value of the company at $375-$395). There will be a better time to buy in the next 1-2 years when the fed starts cutting rates again, and I haven't bought any shares since the fall of '22 (I am a consistent buyer of shares anytime the stock price is >20% below my calculation of intrinsic value).
Warren and Charlie have total confidence in Greg Abel (the anointed future CEO), so while it will be a dark day when Warren and Charlie pass on, I will continue to buy.
A noble spirit embiggens the smallest man.
1. Not a no-brainer to park some cash here. It pays no dividend, so depending on when you will need the cash, there are much better places at much lower risk than depending on what your capital gain will be at some point for BRK.B.lck90 said:
Is it a no-brainer place to park some cash? Seems to be doing quite a bit better than VTI that so many recommend. What are your thoughts on it?
2. Despite a stated succession plan, at the end of the day, Warren and Charlie are the architects of the investment vision and strategy - others are simply executing on that vision. Will they be better or worse than arguably the best tandem in history? I think the odds are on "worse", no slight intended to them at all.
3. VTI is a bad comparison. BRK.B is not well-diversified, while VTI is, by definition. Therefore, BRK.B has a lot more risk due to concentration on a few names. Imagine if AAPL, GEICO and OXY have simultaneous rough stretches.
I have held BRK.B since 2013, and have a 282% return since then, so am quite happy with it as part of my portfolio, but it is in no way a proper cash alternative.
Buncha lightweights. Get back to me when you get some BRK/A shares.
I owned four shares of BRK.A at one time.double aught said:
Buncha lightweights. Get back to me when you get some BRK/A shares.
Back when it was trading for about 150,000 per share.
I dont recall the returns being much different than BRK.B
If you own VTI, then you own BRK.B. Its the 9th largest holding for VTI at 1.4% of its total portfolio. Just VTI and chill 
Without looking I think BRK.B has a higher return than VTIPetrino1 said:
If you own VTI, then you own BRK.B. Its the 9th largest holding for VTI at 1.4% of its total portfolio. Just VTI and chill
Yes, buy brk.b. If you can't buy it 6mo ago, then buy it today.
Only need one share of BRK-B and you can attend the annual meeting in person
Thanks. Will be picking up a few shares.
Brk/a and Brk/b will return very similar over time but B has better liquidity. While it does have a lot of exposure to AAPL, OXY, BAC, KO and a few other names, I think the real bets here are on insurance, BNSF and the energy company more than the stock holdings (other than AAPL). If you like those businesses long-term, which I do, this is a good place to park cash and defer all taxes since there are no dividends and likely never will. They have a huge advantage in insurance because of their size and ability to invest the float however they want. They also can write reinsurance policies where they have little competition due to the size of the policies.
Agree with almost all of this -> as Buffett has said in the past, BRK is basically a bullish bet on the overall American economy.Kansas Kid said:
Brk/a and Brk/b will return very similar over time but B has better liquidity. While it does have a lot of exposure to AAPL, OXY, BAC, KO and a few other names, I think the real bets here are on insurance, BNSF and the energy company more than the stock holdings (other than AAPL). If you like those businesses long-term, which I do, this is a good place to park cash and defer all taxes since there are no dividends and likely never will. They have a huge advantage in insurance because of their size and ability to invest the float however they want. They also can write reinsurance policies where they have little competition due to the size of the policies.
The part we need more information on is more clarity on the "park your cash" component. I took the original post to mean that there was a near-term need for the cash, not that this was a buy-and-hold investment (as you are describing). I think the intended timing and use of the funds is critical to deciding whether or not this is a good fit. If liquidity is needed in 6,9, or 12 months, there are better choices, but if it's retirement money, go for it. Short-term parking and long-term parking are quite a bit different.
I bleed maroon said:Agree with almost all of this -> as Buffett has said in the past, BRK is basically a bullish bet on the overall American economy.Kansas Kid said:
Brk/a and Brk/b will return very similar over time but B has better liquidity. While it does have a lot of exposure to AAPL, OXY, BAC, KO and a few other names, I think the real bets here are on insurance, BNSF and the energy company more than the stock holdings (other than AAPL). If you like those businesses long-term, which I do, this is a good place to park cash and defer all taxes since there are no dividends and likely never will. They have a huge advantage in insurance because of their size and ability to invest the float however they want. They also can write reinsurance policies where they have little competition due to the size of the policies.
The part we need more information on is more clarity on the "park your cash" component. I took the original post to mean that there was a near-term need for the cash, not that this was a buy-and-hold investment (as you are describing). I think the intended timing and use of the funds is critical to deciding whether or not this is a good fit. If liquidity is needed in 6,9, or 12 months, there are better choices, but if it's retirement money, go for it. Short-term parking and long-term parking are quite a bit different.
Totally agree. No stock should be purchased with cash needed in the next year especially with CDs paying 5%+
Probably should have used a better term than "park some cash." My intent was more directed towards long term investment vs short term. The 5+% yield on savings and CDs sure is nice for cash that could potentially be needed in the short term.
Then by all means, load up on BRK.B! I do think they will revert to the mean (VTI) over the years - tough to compete with Charlie and Warren's track record. Just for fun, here are current quotes (we can post updates over time to determine the "right" answer (bottom line, either is likely to be a good choice):lck90 said:
Probably should have used a better term than "park some cash." My intent was more directed towards long term investment vs short term. The 5+% yield on savings and CDs sure is nice for cash that could potentially be needed in the short term.
VTI: $219.90
BRK.B: $371.61
not accurateJSKolache said:
Comparison
https://www.google.com/finance/quote/BRK.B:NYSE?comparison=NYSEARCA%3AVTI&window=MAX
I'm a long term investor and BRK.B is my second largest holding behind AAPL. It has returned 10.1% over the last 20 years. That period includes endless wars, Katrina, the financial crisis, COVID, three bear markets and four presidents of varying 'quality'. I think it is a solid choice for a core long term position.
My only regret about BRKB is not buying some sooner.
Featured Stories
See All
Identifying where Texas A&M could improve or decline in 2026
by Olin Buchanan
23:12
13h ago
4.4k
12:35
11h ago
1.0k
Zach Clemence looks back on his explosive night vs. South Carolina
by Luke Evangelist
24:35
6h ago
672
Pick 'Em & Rip 'Em sponsored by PrizePicks: Week 23
by Matthew Dawson
9:58
12h ago
3.1k