Thursday, November 29, 2007

BRK.B = Future Long Term Success

CJ and Dad, this would be a wise investment after we're done riding the MVIS train. A share of Class B common stock will always be approximately 1/30 the stock price of the Class A common stock. Check out the 10-yr Chart of BRK.B

Investors would've earned an average of 24.6% per year over the last 30 years simply by buying what Buffet bought. CJ, if you put $20,000 in Berkshire during that time period it would've turned into $14,000,000. Berkshire Hathaway is the company Buffet makes his investments through. 99% of Buffet's net worth is in Berkshire Hathaway. Here is The Portfolio.

These are big companies that are going no where. Scroll over each stock and check out the charts. You'll notice an overall similarity. Big name American companies owned at a discount.

Excerpts from Warren Buffet's "Owner's Manual" to Berkshire Shareholders:
  • "If we have good long-term expectations, short-term price changes are meaningless for us except to the extent they offer us an opportunity to increase our ownership at an attractive price."
  • "Overall, Berkshire and its long-term shareholders benefit from a sinking stock market much as a regular purchaser of food benefits from declining food prices. So when the market plummets--as it will from time to time--neither panic nor mourn. It's good news for Berkshire."
  • "Most of our directors have a major portion of their net worth invested in the company. We eat our own cooking."

1 comment:

William Shakespeare said...

Good stuff. Thanks for the research.