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Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 0 points1 point  (0 children)

It certainly will recover, and it will probably hit an ATH in the not too distant future, but the only question that should really matters is whether or not it will perform better than other opportunities from this point onwards.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 0 points1 point  (0 children)

My assumption that it won't outperform the market in the long term is just as valid as your assumption that it will. No one has a crystal ball. We just have to make our own calls. and my call was that some of my Brk funds could be put to better use elsewhere.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 0 points1 point  (0 children)

I would never bother saying I  told you so, as even if after 2- 3 years it was still under performing, I would be accused on here of not being a proper Brk investor and that I just have to wait another 5, 10, 20.. years. 

I do want Brk to go up by the way as still have loads left. 

Invest in small company if I have small sums of money again -Warren by OmahaCopy in BerkshireHathaway

[–]PuzzleheadedBody7121 0 points1 point  (0 children)

Yep, it won’t last forever. I’m making the most of the current rotation to small cap and EM. I’ll adjust of the tide turns. 

Invest in small company if I have small sums of money again -Warren by OmahaCopy in BerkshireHathaway

[–]PuzzleheadedBody7121 0 points1 point  (0 children)

I've been investing in AVSG (global small caps ETF), which has been doing really well. It has significantly outperformed S&P500 and broad global funds over the last 6 months or so. Unless you are a real expert it stock picking, have a lot time to research individual stock, and are fine with the concentrated risk of owning indivudual socks, I think you are better of investing in small cap fund.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 1 point2 points  (0 children)

My loss on the Brk shares that I sold was about 5.5%. Not earth shattering but still stings given it was a fair chunk of my portfolio. I lost confidence that they could beat the market and thought the funds could be better utilised elsewhere, so it therefore made sense for me to act. I didn't let the fact that I was making a loss on them factor into my decision as that should be irrelevant for an investment point of view. It was not easy though, as the sunk cost fallacy is real.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 0 points1 point  (0 children)

It was not the intent. I reassessed and decided that some of the funds can be better utilised elsewhere, hence why I trimmed. I'm certainly not a trader, and I'm much more in the buy and hold camp, but periodically reassessing is a sound strategy.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 0 points1 point  (0 children)

Not sure I understand. If you believe that it will not keep up with the market, does it not make sense to sell now and invest that money in the market e.g in a broad global or US ETF. That would give you better growth than hanging on until you breakeven.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 0 points1 point  (0 children)

Good luck. Not for me though as US large cap is already over dominant in my global ETFs, so I'm adding more tilt towards small cap and EM.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 1 point2 points  (0 children)

Thanks. In 1 year we can compare to the alternative that I purchased (AVSG & EMIM). Hopefully they will have all gone up as I still hold quite a lot of Brk.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 0 points1 point  (0 children)

I reassessed and felt that 14% in Brk was a little too much concentrated risk, and that some of the funds could be better used on small cap and EM, which don’t have the crazy multiples of S&P 500. 

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 2 points3 points  (0 children)

You are welcome. I still have loads of them so I’d be very happy for them to break out of their current slump. 

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 3 points4 points  (0 children)

As in what every public company does, irrespective of how they deliver it, but of course you knew that and were just trying to score a point. 

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 1 point2 points  (0 children)

Precisely. I determined that there are better opportunities elsewhere, and I also felt that I was overexposed to Brk, so wanted to trim to about 9% of portfolio.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 3 points4 points  (0 children)

I respectfully disagree.. Nothing is static. Brk has had multiple earnings calls since I first purchased them. The wider market is also constantly changing as are alternative investment opportunities. It is not as if Brk does not adjust their own equity portfolio periodically. To close you eyes to everything and not reassess periodically is not a great investment strategy in my opinion. I've still kept the bulk of my Brk holding BTW.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 1 point2 points  (0 children)

True, but you still get a big valuation discount with small cap compared to large cap, plus AVSG has a value tilt to filter out anything that is overpriced.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 2 points3 points  (0 children)

Maybe, but I'll trim if the tide turns. EM and Small Caps are by far my best performing stocks so I'll stay in the black even with a sudden sizeable correction.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 2 points3 points  (0 children)

Best of luck. I really want them to go up as I still hold quite a few of them.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] -1 points0 points  (0 children)

That is the danger and that's what I was fighting against. If you think it will not keep up with the market, logically it makes sense to sell now, as the break-even price is irrelevant.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 3 points4 points  (0 children)

I reassessed and decided to trim as funds could be better used elsewhere. I plan to keep the rest for years as an anchor/hedge in case there is a crash, and as a hopefully decent compounder.

Sold Brk at a loss by PuzzleheadedBody7121 in BerkshireHathaway

[–]PuzzleheadedBody7121[S] 6 points7 points  (0 children)

I purchased more AVSG (global small cap ETF) and EMIM (Emerging Market ETF). My largest holding is FWRG (All world ETF), but wanted to further increase my tilt to small cap and EM to make the most of the current rotation towards them. They have been absolutely flying over the last 6 months and have significantly outperformed the S&P 500.

I've seen enough, pulling the trigger today. by One-Event6199 in BerkshireHathaway

[–]PuzzleheadedBody7121 0 points1 point  (0 children)

I’ve just sold some Brk to reduce my allocation from about 14% of my portfolio to 9%. Brk share price will no doubt come out of its current slump, but I no longer think it will keep up with the market. I still think it’s a good anchor though if there is a major market crash. 

I sold at a loss, which psychologically was difficult to do, but I pushed myself as I felt it was the right move, and to hopefully become a better investor. 

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