It amazes us to watch the fickleness of the Wall Street ebb and flow like a tide that’s unsure of its direction. In 1989, Buffett was a genius, by 1999 he was behind the times, by 2002 a genius again, and finally “bruised” this year…
Bruised - are you serious?
Warren Buffett is the closest thing to a living legend in many investment circles. He has remained constant in his investment approach regardless of the hottest trends and mania’, and he represents the best of American buy-and-hold strategy.
And just because his stock price has slipped this year we’re already questioning his market wisdom?
Last year found him writing an op-ed for The New York Times, on why he’s buying stock. As for performance this year, Buffett’s investment vehicle Berkshire Hathaway, is such a massive company that it looks more like a mutual fund. It makes sense that if the broad market is down, then Berkshire would be as well.
Buffett has been picking up shares and preferred stock from dozens of Wall Street’s battered institutions. And the attractive interest rate terms he requires, and gets, are something any money manager would look on with admiration.
Berkshire Hathaway’s ( BRK.A) stock is trading almost at half the price of it’s 52-week high. You’d have to go back to 2003 to see bargains like we have right now. The BRK.B shares are trading around $2,400 and represent an attractive price to buy into the investments of a master.
With his much-awaited Berkshire annual report due out tomorrow, investors won’t have to wait much longer to “hear the words from the mountaintop,” as it were. It’ll be interesting to see if his words alone can pull up the price of his stock.
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Pilgrimage to Warren Buffett's Omaha: A Hedge Fund Manager's Dispatches from Inside the Berkshire Hathaway Annual Meeting by Jeff Matthews
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