MarkGillCPA

Berkshire Hathaway Stock Portfolio: At Risk of Resembling an Index Fund?

BRK is not so much an index fund as it is a closed-end fund. Going forward, I will analyze BRK by looking at its NAV relative to the price of the stock. If it's selling at a discount ot NAV, it's a buy. If is selling at a premium, it's a sell. BRK actually trades at either a high premium or low premium, but it's the same point. I suspect this NAV premium will decay over time, especially if something happens to Mr. Buffett. I know of at least one hedge fund manager who has been trading BRK using this concept over the last year with some success. Berkshire is slowly becoming Tri-Continental (TY), a closed-end fund that invests in blue chip stocks

Why I'm Committed to the UltraShort Financials ETF

Your financial short and commodity long postions have worked well this year. I hope you've taken some profits. The financials are way oversold, over-shorted and already discount a lot of bad news. Both USB and WFC just announced earnings reports that were not as bad as feared. I went long the UYG (Proshares Ultra Financials) this morning. And while I realize there's a lot of short covering going on today, the financials could move another 20% up without breaking their 50-day moving average, which equals a 40% move for the UYG.