k45

Berkshire: Little Downside Left at Current Levels

Todd,

You are writing from a logical standpoint. Unfortunately the market is driven by emotion. I've been in and out of BRK.B a couple of times, I usually make the wrong decisions with it. Obviously an excellent company, but it's harder to judge what it's stock is going to do.

Cash Is Not Yet King When it Comes to Market Performance

One month MARKET performance only reflects what the stock buyers and sellers are doing and has absolutely nothing to do with the fundamental health and long term growth of the company! It can also be widely skewed by past *market* performance (was the stock excessively bid up in some previous period?)

If you want to do some *serious* studies, look at what cash rich companies have done over five and ten year periods (hint, Berkshire (+43%) and Exxon (+114%) have done quite well vs. the S&P (-26%) over the past ten years).

You are totally confusing short term "Mr. Market" vs. fundamental health and growth. They are not related.