Berkshire Hathaway Class B Shares Attractive Here

In these extraordinary economic times, epic and frigthening market events seem to occur with increasing frequency. However, Warren Buffett, investment guru, heeds us to "be fearful when others are greedy and greedy when others are fearful."

The truth is that most human beings have a natural aversion to pain and instinctively withdraw from anything remotely uncomfortable. This includes bear markets. For anyone lacking the courage to follow this wisdom wholeheartedly (your author included), allow Warren Buffett himself to do it for you.

Berkshire Hathaway Class B shares (BRK.B) is the answer. Its shares closed today at $4565.00 and are up 17.2% since September 10th. Whether investors will get a buying opportunity on a pullback is open for debate. What really matters is the  usurious terms Buffett is demanding and receiving for his and his shareholders’ capital these days.

There is a good likelihood that there is still some long-term appreciation potential yet to be realized from his recent decisions. Some people play checkers and others play chess. Buffett is a grandmaster. Rather than lament about not having capital on Buffett’s scale, consider buying the stock to get your proportionate share of ownership, risks and rewards from these deals.

And remember, if the market conditions worsen, then the opportunities only will get better for Berkshire and its shareholders. So what are you waiting for? A lunch invitation for a burger, fries, and coke from the man himself?

Disclosure: Author is long shares of BRK.B as a long-term core holding for retirement assets.

Comments

[PCScipio:]

Why not BRK.A, piker?

2008 Oct 02 03:29 AM

[BlueDome:]

A big pullback is likely. BRK has become a flight to safety stock. As soon as conditions improve, many investors will sell and put the money in more aggressive stocks, causing BRK to drop. It has already happened earlier this year. Plus Buffett himself has said it's a difficult time for his core insurance business. Comparisons with last year will be poor.

2008 Oct 02 09:43 AM

[Bubba Jones:]

Can we PLEASE stop kissing Warren Buffet's ass...It's getting really tired.

2008 Oct 02 11:19 AM

[muguwmper12:]

You can stop kissing Buffet's ass when you can squeeze better deals out of Goldman and GE than he can. Never.

You may think you can out pick him, but you simply can't out deal him. You just can't.

You don't have the money nor the connections. Goldman is not going to call you on the phone and ask you for a large investment on beneficial terms to you. They won't.

2008 Oct 02 11:26 AM

[Urbane Gori...:]

mugwumper12 ... You just gave all the reasons why many people are not that impressed with Buffett... I read his pithy comments and enjoy his success at the expense of other companies as much as the next guy.. Buuuut .... Well read you own comments.

jegan ;-)

2008 Oct 02 01:33 PM

[helplessobs...:]

Soar with the Eagle, otherwise you may be the road kill the Eagle swoops in on at bargain prices. Wow, who would ever thought GE would be road kill?????

2008 Oct 02 02:11 PM