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I'd look at companies Berkshire Hathaway holds shares in. I think some bank and credit card stocks are decently priced right now, both those Berkshire holds, a
by SamReidHughes 4y ago
I'd look at companies Berkshire Hathaway holds shares in. I think some bank and credit card stocks are decently priced right now, both those Berkshire holds, and others.
Personally I prefer to avoid index funds because I don't know how the general market will go, but I did know how some specific companies would go. But I felt much more clarity about that last year. I don't want my returns to hinge on Federal Reserve policy, so each position I hold right now, IMO, is something that will do well regardless of Fed decision-making.
- bb88 4y agoCould one maybe just buy one share of berkshire hathaway? Could one buy fractional shares of berkshire hathaway on fidelity?
- SamReidHughes 4y agoThere are class B shares, so there's no need for fractional shares. I don't like the idea of paying the Berkshire premium myself (as it's priced greater than the sum of its assets) but I'd rather hold it than SPY.
- listenallyall 4y agoThe problem with your logic is that when Berkshire takes a position in a new company, you, not being a BRK shareholder, must pay a significant premium to clone that position. In other words, once it becomes public info that BRK bought a lot of company X stock, that stock will likely have jumped 10-20%, and you're forced to pay the higher price to maintain parity.
- deleted 4y ago[deleted]