jonno
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nil satis nisi optimum
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Post by jonno on Jun 9, 2020 9:16:05 GMT
Why is brk.b still down 15% from its all time high? Why do you think it has more chance to grow? Why is it holding so much cash? How is it positioned to outperform given COVID-19? Will it manage to? It still has succession issues, what are they priced at? It still has lots of political risk, what is it priced at? It still has lots of regulatory risk, what is it priced at? It might still have lots of derivative risk, what is it priced at? etc Good questions. Do your own due dilligence before investing Sounds like he has!!
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hazellend
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Post by hazellend on Jun 9, 2020 9:44:52 GMT
Buffet appears to have lost it. He panic sold his airline stocks and missed a huge rebound. I know he’s long term, but even he seems to admit he can’t beat the market.
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sd2
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Jun 10, 2020 11:08:17 GMT
Post by sd2 on Jun 10, 2020 11:08:17 GMT
People expect to much of Buffet...he's human. I constantly read he still hasn't invested his vast cash pile. That doesn't mean he knows that the market will fall again. He's human. Even if it does, it's not relevant if you bought shares cheap that's all that counts. Not not whether theres a double dip and you could have got them cheaper. Anyone who goes says there is going to be second crash is a penis head.The only person that can time the markets perfectly is a time traveller.
Bought (as an example) perpetual income and growth on 26% discount. At the time average discount 16%. Discount now 15% average down to 13%. Bought 184, lowest end of day 157p so no where near bottom. Highest end of day 342p. Up 23% on 8% dividend. 1 year dividend reserve. One year share price increase -22% Manager sacked during crash (unrelated) also sacked from Edinburgh IT. Possibility of the two amalgamating (wrong word). With interest rates so low there is a possibility that it will get back to its peak before the economy is back to normal growth. Smithson 1 year share price increase 22%. Bought at 898 bottomed out at 890 (I was very lucky). Today up 60% no dividend.
One of Main thing to note is the share price increase over 5 years of dividend bias shares is generally zilch. Terry Smith maths on investing in growth shares is quite overwhelming. Ignoring his emerging market investment trust!. Which I will invest in once it's been turned round. He clearly shows your better of investing in a growth IT and selling shares and paying capital gains tax when you need the money. Although as I am unlikely to pay any tax, so for me investing for dividends changes the maths significantly. I will probably increase my investments in growth by selling an investment Trust. As an aside when it comes to individual shares you can have your cake and eat it.... Legal and general today 42% gain 10. 5% dividend. That's having your cake and eating it!!
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cwah
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Post by cwah on Jun 10, 2020 12:54:43 GMT
Buffet appears to have lost it. He panic sold his airline stocks and missed a huge rebound. I know he’s long term, but even he seems to admit he can’t beat the market. I don't mind if he doesn't beat the market. He says himself he may not do it. But his strategy is to have a fortress portfolio. He is fully prepared for any downturn or crash. So he may not be the best performer, but he will keep getting stronger whether a crash happens or not. Its a protective asset. I'd buy it instead of bond for example.
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hazellend
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Jun 10, 2020 16:26:32 GMT
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Post by hazellend on Jun 10, 2020 16:26:32 GMT
Buffet appears to have lost it. He panic sold his airline stocks and missed a huge rebound. I know he’s long term, but even he seems to admit he can’t beat the market. I don't mind if he doesn't beat the market. He says himself he may not do it. But his strategy is to have a fortress portfolio. He is fully prepared for any downturn or crash. So he may not be the best performer, but he will keep getting stronger whether a crash happens or not. Its a protective asset. I'd buy it instead of bond for example. What kind of bond? If you’re talking about government bonds then brk is much riskier. BRK is probably a good investment, but it’s definitely equity level of risk
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cwah
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Jun 10, 2020 16:30:26 GMT
Post by cwah on Jun 10, 2020 16:30:26 GMT
I don't mind if he doesn't beat the market. He says himself he may not do it. But his strategy is to have a fortress portfolio. He is fully prepared for any downturn or crash. So he may not be the best performer, but he will keep getting stronger whether a crash happens or not. Its a protective asset. I'd buy it instead of bond for example. What kind of bond? If you’re talking about government bonds then brk is much riskier. BRK is probably a good investment, but it’s definitely equity level of risk Really not. Most bonds actually. Safe bonds like treasury pay almost nothing. And corporate bond around 2-5% also have risk of default and price going down as well. Over the long term (10+ years) stock almost always perform better than bonds. On the short term (<3 years) then yeah bonds are safer but then I'd rather hold cash than having bond paying almost nothing
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Stocks
Jun 14, 2020 23:06:16 GMT
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Post by elephantrosie on Jun 14, 2020 23:06:16 GMT
Wb is good, but brk is overpriced...
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cwah
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Jun 15, 2020 1:47:20 GMT
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Post by cwah on Jun 15, 2020 1:47:20 GMT
Wb is good, but brk is overpriced... Why is it overpriced? Its selling at $181 now! I'm waiting for a small additional drop and will add up
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hazellend
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Jun 15, 2020 7:12:49 GMT
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Post by hazellend on Jun 15, 2020 7:12:49 GMT
Wb is good, but brk is overpriced... Why is it overpriced? Its selling at $181 now! I'm waiting for a small additional drop and will add up Why? If you won’t buy more at the current price then that suggests you also believe it is overpriced. BRK is a massive conglomerate and is very likely to be priced correctly. So if you want it, buy it.
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cwah
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Post by cwah on Jun 15, 2020 8:29:48 GMT
Why is it overpriced? Its selling at $181 now! I'm waiting for a small additional drop and will add up Why? If you won’t buy more at the current price then that suggests you also believe it is overpriced. BRK is a massive conglomerate and is very likely to be priced correctly. So if you want it, buy it. I don't think its overpriced now. But I like to buy with margin of safety, especially in this current environment. They had an recently insider buyer Meryl B Witmer who bought $1.7 mln of share out of $20M net worth at $175. So just this is a good news. I just added some at $177. I'll keep adding more as the stock go lower.
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Post by dan1 on Jul 2, 2020 8:28:25 GMT
VWRL is frequently mentioned on here so I thought it worth pointing out VWRP which is the accumulating variant launched within the last year. There are quite a few new-ish accumulating ETFs according to Vanguard's site.... www.vanguard.co.uk/adviser/adv/investments/all-products(select Accumulating from the share class drop down list) DYOR and all that.
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Stocks
Jul 2, 2020 12:35:23 GMT
Post by Deleted on Jul 2, 2020 12:35:23 GMT
Very useful link, thanks. What I don't really understand is that the numbers just look so unattractive, most of the funds do poorly and even the better ones (and there are some good ones) generally do more badly in recent years compared to older years. Why is that? I imagine the savings of management fees are attractive but the core numbers don't really seem to make up for that.
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hazellend
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Jul 2, 2020 14:35:27 GMT
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Post by hazellend on Jul 2, 2020 14:35:27 GMT
VWRL is frequently mentioned on here so I thought it worth pointing out VWRP which is the accumulating variant launched within the last year. There are quite a few new-ish accumulating ETFs according to Vanguard's site.... www.vanguard.co.uk/adviser/adv/investments/all-products(select Accumulating from the share class drop down list) DYOR and all that. I use VWRP in ISA/SIPP and VWRL outside of tax sheltered accounts. Accumulating investments are a pain when it comes to self assessment tax
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hazellend
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Jul 2, 2020 14:36:53 GMT
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Post by hazellend on Jul 2, 2020 14:36:53 GMT
Very useful link, thanks. What I don't really understand is that the numbers just look so unattractive, most of the funds do poorly and even the better ones (and there are some good ones) generally do more badly in recent years compared to older years. Why is that? I imagine the savings of management fees are attractive but the core numbers don't really seem to make up for that. They just track an index bobo. With index trackers you accept market returns in the knowledge that 90% of active investors underperform their index over 10 years.
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Stocks
Jul 2, 2020 14:56:50 GMT
Post by Ace on Jul 2, 2020 14:56:50 GMT
VWRL is frequently mentioned on here so I thought it worth pointing out VWRP which is the accumulating variant launched within the last year. There are quite a few new-ish accumulating ETFs according to Vanguard's site.... www.vanguard.co.uk/adviser/adv/investments/all-products(select Accumulating from the share class drop down list) DYOR and all that. I use VWRP in ISA/SIPP and VWRL outside of tax sheltered accounts. Accumulating investments are a pain when it comes to self assessment tax Did you get that the right way round? And sorry to be thick, but why are "Accumulating investments are a pain when it comes to self assessment tax"? Surely anything accumulated in a tax wrapper is itself automatically in the wrapper. I'm worried that I may be completing my tax return incorrectly now.
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