Sell BRK.B now as value is priced in; expect ~6% long-term return with low risk.
Jump to any passage
Next one, we have Birkshshire Hatway. We did a few videos recently after the earnings. I have said that if I would own Birkshshire, I would sell but Birkshshire as a long-term investment will deliver.
And this is why I put it at similar to the US Treasury, but much less risk or practically no risk. I know that Bergkshire will deliver its 6% long-term return no matter what happens.
If there is inflation, Berkshire is a business protected from them. There will be ups and downs, insurance issues, things like that. That's why I'm saying I'm not buying it. I would sell it now and then when it gets more fairly valued because all the good that Bergkshire has is now priced in.
So long-term will deliver a good return but not a great return.
Is Birkshshire risky from a price perspective? In the short to medium term, yes. In the long term, you know what you get with Birkshshire at the current price. Sooner or later, you will get that five six% long-term return.
Whether you will have to wait 10 or 20 years, that's something I don't know.
What this channel has said about $BRK.B
Value Investing with Sven Carlin, Ph.D. has 3 calls on this stock; only the adjacent ones are shown.