You are hereI bought more Brk.B Berkshire Hathaway @ $2,900

I bought more Brk.B Berkshire Hathaway @ $2,900


Raytoei's picture

By Raytoei - Posted on 31 January 2009

This past week, when Berkshire Hathaway B shares dipped around 2800 to 2900, I added more shares to my existing pool. The isn't rocket science really since my previous purchases hovered around 3100 to 3200 more than 3 years ago. And it has since fluctuated to as high as 4,858.00 and as low as 2147 in the past 52 weeks.

Owning Brk.B shares at these levels is like holding cash with an upside, this is my main holding area until I can find better ideas to move out of BRK.B. This past week, I scanned the following companies as potential candidates:

* Pipeline companies like KMP / KMR, TPP , BPL/BGH for its delicious dividends. But I decided that the high debt load was an unknown.

* Cemex (CX), i almost bought this a couple of years ago for its best-in-class business. Again the debt load from previous M&A made it quite risky, perhaps better to wait until the housing market recovered

* Amazon vs Etrade. Decided that Etrade was cheap with a P/E of around 8 but since I no longer used Etrade, I think I am not alone. However in the past 12 months, my usage of Amzn has risen quite quite a lot despite the fact that I'm from Asia where the shipping cost is high. However, AMZN isn't cheap enough.( Well, after my analysis, AMZN announced better than expected profits and it rose 10% shortly after that...oh well)

* McCormick (MKC) and Kraft (KFT), I like MKC because of its linearity in Revenues and earnings. Again I did not choose either because of the high debt load, although I have no doubts that they have no problems with servicing the debt.

* In the end, I chose Ticketmaster (TKTM), and ended up buying a minuscule position at $6.45, while I continue to do some due diligence before I decide whether to buy more or not. (See the TKTM post in the "Investment Ideas" forum.)

cheers!

raytoei@gmail.com

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