George Spritzer

Berkshire Hathaway: At a Good Buying Opportunity

Lisa-
Buffett's stock selection ability may be priced in, but Berkshire is rapidly gaining other big advantages-
1) Private equity firms have been reneging on many deals. Berkshire is now the buyer of first resort for private business owners who want to sell, especially since the IPO market is almost dead.
2) Private equity firms had big investment inflows in 2004/2005/2006 and need an exit strategy. Right now they are trapped- the IPO market is dead, financing is tight. Many investors will pressure them to cash out. Berkshire will be in a strong position to cherry pick the better firms at bargain basement prices.
3) Don't be surprised if Berkshire is part of a FRE/FNM bailout in the next few years with the government taking most of the risk. These could be the elephants Buffett has been waiting for.