Another Small Add

By Travis Johnson, Stock Gumshoe, September 3, 2013

Just a note to confirm that my limit order to add a few more Berkshire Hathaway shares to my portfolio was triggered while I was on vacation — so I now own a few more shares, bought at about $111. I consider that an abundantly reasonable price but not a bargain price — with Berkshire likely to do share buybacks if and when the stock dips meaningfully below 1.2X book value, I don’t think we’re likely to see a real bargain price in the shares anytime soon, unless, perhaps, Warren Buffett retires suddenly or starts showing signs of dementia. Right now the shares are around 1.3X book value, though I expect that the continuing success of the underlying operating businesses and of the insurance operations will mean that book value has probably risen again since the last quarter.

This is not a call from me that the line is drawn in the sand and Berkshire Hathaway can’t go below $110, which it certainly can, it’s just an appealing place for me to invest some cash I had on hand at a good price, in a core holding that I anticipate owning for many more years. Berkshire Hathaway (BRK-B) remains my second largest individual stock holding, behind only Apple (AAPL).


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