Sunday, October 07, 2007

Berkshire Hathaway (B) above $4,000 per share

Thank you, Warren Buffett! The stock had hovered just under $4,000 per B share a few times, but not until Friday did it close above the magic number. That is up from under $3000 last summer.

I bought as much brk.b as I could last summer, and had my family and some friends do the same. It is extremely rewarding to see everyone doing so well off of that advice. Giving advice on stocks is super nerve-wrecking because you feel personally responsible for it all. And for the record I don't recommend selling it. It offers a nice upside if the economy does well and there aren't disasters, but it offers lots of downside protection if things go wrong. Even at this higher price, it's just a great place to have your money. And for those following everything Warren Buffett like I do, he has been sending a very strong signal for Berlington Northern Santa Fe (BNI) for months now (as I mentioned) . Again myself, family and some friends have bought stakes recently, and despite the 6% increase on Friday, I don't think it's too late for this train....

Note that $4,000 is over $1,000 per share above where it was after he announced his massive charitable donation. My opinion was that he announced the donation then because he knew the stock was undervalued, and that way any negativity surrounding the donation would be negated by a rising share price. Many were worried that will the charities selling the stock, it would create downward pressure, which is hogwash to begin with, but Buffett I'm sure at least payed attention to those concerns because he always cares about the shareholders, and indeed has made working for the shareholders his lifelong pursuit.

Rambling "don't sue me" disclosure I always see at the bottom on stock sites/blogs....I don't know if it's needed and maybe one of my friends in law school can tell me....


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