Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#1
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What will happen to the price of BRK when Warren Buffett passes the torch?
He is now 93, I believe, and at some point he will need to relinquish control or pass away as Charlie Munger did.
Short term I expect BRK to take a hit. My concern is what will happen to the price of the stock long term? Any thoughts and/or predictions?
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"No one is more hated than he who speaks the truth." Plato “To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine |
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#2
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What is the price of BRK as a % of its net assets per share?
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#3
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__________________
"No one is more hated than he who speaks the truth." Plato “To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine |
#4
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Buffett will be a tough act to follow, but Apple did just fine after Steve Jobs and new retirees are still snapping up homes in the Villages after Harold Schwartz and Gary Morse. I would expect there is a “in Warren Buffett we trust” good will premium built into the stock price that might disappear, but only time will tell. There used to be a significant “in Elon Musk we trust” premium built in Tesla’s stock price, but gullible investors seem to be smartening up to that one.
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#5
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Buffet has said that the people taking over after him and Munger are gone are smarter than them. I tend to believe him. From the sounds of his last speech earlier this month it seems like he might decide to retire before he dies first.
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#6
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Quote:
I first heard about Buffett in the 1970s after he had started buying into GEICO which had been my insurer. I was a young government employee living in the DC area during the late 1960s, loved muscle cars and GEICO offered great rates. I bought a few shares of BRK in the early 1980s and just held on to it. 8 Warren Buffett Deals That Won Big | The Motley Fool
__________________
"No one is more hated than he who speaks the truth." Plato “To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine |
#7
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Buffett has already named Greg Abel as his successor and he has attributed many past success stories to Greg so I suspect that what you get in the next few years of Warren's life is what you'll get after he passes and that will likely be just as stable and well performing as BRK's past. I do think the stock will take a short term hit though, as it did years ago when news of Warren having a colon issue surfaced.
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#8
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It’s a crap shoot. There have been many businesses/fund managers that have taken big hits when their founders have left, retired or died. To name a few: Apple, Starbucks, and Disney. Tim Cook is no Steve Jobs! Apple failed miserably when Jobs was fired over 30 years ago and floundered for a long while after Steve’s death. When Richard Aster of Meridian Growth investment died, Morningstar advised to stay away. Same for Dave Williams.
This is 1 of the reasons to go with index funds since there is no active manager involved. |
#9
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Buffet
BRK is a celebrity stock the millionaires who bought it years ago and people like me buy it to go to the stockholder meeting. Who will go when he's gone if they even have it as a weekend event like it has been. And it's been pretty flat for quite a while
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#10
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Like Jobs, Buffet is unique and not easy to replace, I would say irreplaceable. Others may suffice but would not have the same unique qualities that the originals created. Apple has not be innovative since the loss of Jobs and competitors have caught up not even to mention that the world has changed since then. These people ARE special and their success shows it.
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#12
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Quote:
In the late 1980's, our law firm started making some money. One of my partners had been a broker with Shearson Lehman before going to law school. I was trying to "play" the stock market, with some success and many failures. He told me to stop and to just put everything I had into Berkshire. Oh how I wish I had taken his advice! It took 20 years of ups and downs before I wised up. |
#14
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Yes. BRK bought a little Chubb, $7B, but may have $200B in cash in a few months. The market keeps getting pricier. Shiller PE Ratio is quite high, double its mean.
__________________
"No one is more hated than he who speaks the truth." Plato “To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine |
#15
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On that basis, I would suspect any drop to be temporary |
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