Padders72 wrote:Dod101 wrote:vand wrote:I wouldn't consider BRK to have any sort of special hedging characteristics that would help it fare a bear market any better. Right now with 47% in AAPL, BRK is about as concentrated in any single stock as I have ever seen it, and because AAPL has held up so well and there has been a rotation into value, BRK has weathered the selloff reasonably well... but these factors can just as easily unwind. AAPL is very much a consumer discretionary stock, and in a recession I could easily see their earnings falling and the stock getting derated.
I do not know what is meant by '47% in Apple'. I doubt very much that 47% of BK's assets are in Apple nor does it own 47% of Apple shares. I do not follow BK all that closely for all sorts of reasons but I do read the literature.
Dod
Well it seems like he explained pretty clearly, 47.6% of the BH funds invested in equities are in Apple, see post 2. If that is indeed the case, I wouldn't go near that with a barge pole.
That 47% is of the quoted equity investments, not of BK's total vale and, as SH has said (and he knows more about BK than I do), the wholly owned subsidiaries are no doubt undervalued in BK's accounts so if they were to be valued as publicly quoted companies they would be shown to be 'worth' a great deal more I am sure. Seeing the numbers printed out of course shows the staggering valuation for Apple.
So maybe it is just vand's phraseology, but BK does not have '47% in AAPL', although it will still be a very high figure by most people's standards, I have no doubt.
Dod