MDCigan

Explaining the Berkshire Share Price

runningofthebulls.type...

Explaining the Berkshire Share Price

<i>BRK.A has Billions in cash and apparently can't find companies to invest in, yet Buffet sold Billions worth of puts. Since Options can be exercised at any time, BRK.A has the Potential of suffering big time from this one act, at any time.

This isn't the first time he has strayed. He invested Billions in the Futures markets Betting on the USD's decline a few years back. After Losing Billions he covered.</i>

Wow, this is total BS, and 110% factually incorrect. The puts Buffett sold are European style WHICH MEANS THEY CANNOT BE EXERCISED EARLY. THEY CAN ONLY BE EXERCISED AT EXPIRATION. Unless this is the end of capitalism, then odds are pretty good the major indices will be much higher in 20 years.

Regarding Buffett's bet against the USD, he closed those out at a huge profit, not loss.

What If Warren Buffett Is Wrong About the Markets?

"This is not a criticism of the man or the individual, rather, this is more about a growing disparity between those with money and those without. The advantage is that the money he puts to work doesn’t need to be pulled out or withdrawn to feed a family, pay a utility bill, or keep the mortgage going for one more month."

Well, if this is true, then it is the problem, right? Money invested in the stock market SHOULD be money not needed for at least 5 years, if not even longer. Who in their right mind would invest money in the stock market that they need NEXT MONTH to "feed their family", "pay a utlity bill", or their mortgage payment.