$Berkshire Hathaway(BRK.B)$
Whenever I make an investment, I write down this:
1. The reason I bought it.
- It is a diversified business of over 60 companies as subsidiaries.
- It has over 40 stocks in investments & dividends as returns.
- Main purposes of owning it is not to have best returns but to have minimum risk of me losing my money long term.
- It has outperformed S&P 500 long run.
- It is recession proof company (able to be defensive/aggressive according to economy).
- It is cash cow loaded with exceeding 300B in upcoming quarter.
2. The valuation
- As I bought almost at premium price average, $469.5, it stands to near 1.65 book value.
- Average valuation is about 1.5 P/B.
- It is okay as valuation will keep increases as revenue keeps increasing.
- I will need to look beyond 5,10 years. (10 years from now, $469.5 will looks silly.)
- it may hit 2T to 3T valuation by 2030. That's 1x to 2X from current price, that's okay, I am still beating average return of S&P.
3. My intended holding period
- Forever. Simple as that.
- $BRK.B is not my investment account. It's my savings account.
- What I have in my bank is my spending account.
4. Would would make me sell?
- When emergency funds is needed.
- Unforseen event happens in family.
- Recession comes? Nope. Berkshire is built to last.
Above is what reminds me why I gonna hold Berkshire long term.
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