BRK Is Now A Hedge!!!

[@thomasAdam-j6n]

i see brk.b stock as a complicated cooperative stock, buffett has been playing around lately i expect a bull run.

[@MaryDavidlove2]

he made me buy apple good move, but since he took of his apple shares thing has been happening brk i think he's playing some game, that made me find interest in a cooperative investment like icicportfolioinvestment..you can look it up Thomas

[@BryanJohn450]

@@MaryDavidlove2 Was on the edge to sell BRK because of the huge Apple exposure and this is not my first time hearing about this icicportfolioinvestment will check it out.

[@MichealJamesw]

@@BryanJohn450 i see they are good.

[@JanetAlber]

@@MaryDavidlove2 he's not that is called investment strategy

[@SGETjome]

Was on the edge to sell BRK because of the huge Apple exposure. Now Warren sold most of the Apple shares and I am again a happy BRK shareholder 😊

[@afonsodeportugal]

Wise!

[@Value-Investing]

:-)

[@xJoeKing]

In WEB we trust.

[@aivetrading7625]

Hi Sven, accidentally checked your video couple weeks ago and now watching all of them. Great job, I so much missing content, thanks so much for what you are doing!

[@NO-TIME170]

Markets at all time highs make me nervous. Heavily backing BRK right now. But I’m still open to buying more because some brilliant companies seem at good prices as i have north of 250 grand i don't know where to dump. What’s everyone’s thoughts?

[@PauleAraiza]

Elon Musk has been a huge part of the campaign so, energy and cars among others with Trump winning, but who knows, the market has been a basket of surprises lately.

[@JordanReam8186]

Such uncertainties are the reasons I don’t base my judgement on a ''heresay''. My dollar portfolio is made up of 30% S&P500, 25% Index funds(ETFs),15% Gold and over 30% in digital assets, thanks to my CFA for this accurate asset allocation. This strategy is what works for my spouse and I. We've made over 80% capital growth minus dividends.

[@Redwood4040]

@@JordanReam8186 This is incredible. Could you recommend who you work with? I really could use some help at this moment.

[@Redwood4040]

This is incredible. Could you recommend who you work with? I really could use some help at this moment.

[@JordanReam8186]

Victoria Louisa Saylor is the advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.

[@davidbenett1]

I am impressed with your update on these stocks, now my question is which is best to buy at this time. I have some liquid assets to diversify.

[@Value-Investing]

will make a video on all the stock in comparison

[@stevenorris1]

In no order: 1) VOO 2) QQQM 3) SCHG/VUG 4) VTI 5) SCHD/DGRO. Personally I put down 1.2m$ on few ETFs, still diversifying. it was this time last year I made my first break through with a liquid 370k. Handed it to a trader here in TX, I get weekly pay out which I put back on long term ETF's. Tesla will be a huge buy for me when the market bottoms.

[@davidbenett1]

Thank you so much guys, I already added VOO and QQQM, can you share this Pro with me Steve.

[@stevenorris1]

Yeah, Jennifer Kristie Taylor use her name to look her up.

[@fredhossan6655]

I met Jennifer Kristie for the first time last year at a conference here in Pennsylvania, and my life has changed for the better since then. God bless her!

[@Adam-tt5hn]

‘All investments should be weighed against the risk free rate’ - Buffett

[@unktzor]

Awesome video and interesting to see how you extracted the data and put it into a value investing framework. Keep up the good work! 😁

[@Value-Investing]

Thanks, will do!

[@saneb5955]

Why not just buy T-bills and wait like brk is for better valuations?

[@bigmuff4839]

Although BRK is of course a great business, never forget: Price is what you pay, value is what you get. Even Warren doesn't buy Berkshire right now.

[@WolfBoehme]

Great reminder. Having said that, BRK is selling at just over 23x earnings while the S&P is selling at almost 28x earnings and BRK has what I call a lot of "earnings optionality" meaning a huge chunk of its earnings are generated by treasuries which are extremely liquid so BRK is perhaps uniquely qualified to do great deals in times of market uncertainty because it not only has the cash, but has the cache and can dictate terms the way it did when it invested in Goldman Sachs in 2008. Perhaps for Buffett repurchasing BRK shares doesn't make sense, but for the rest of us, perhaps we should look at an investment in BRK differently. Thoughts?

[@bigmuff4839]

@WolfBoehme Thank you for the response. Please keep in mind that even a company like BRK reaches -30 or -40% from time to time (and then goes down together with the stock market). So relative to the market you are totally correct, in an absolute way on the other hand...

[@DudeEsq]

Sven and I were buying BRK.B in 2020. 0.9 P/B. Insane. I’ll never sell.

[@mikkelhansen3714]

9:00 Well i don't know if I would call Google 'extremely expensive' - It has the same PE as Berkshire according to your calculation:)

[@Value-Investing]

have to update on it

[@pongop]

Fascinating video! Thank you!

[@Value-Investing]

Glad you enjoyed it!

[@afonsodeportugal]

"Berkshire is always a buy" 😋

[@Value-Investing]

yep!

[@DennisdeRuiterrrr]

You where very right buying BRK when it was at +/- 280

[@Value-Investing]

easy one

[@faronskelton4085]

Thank you sir!

[@Value-Investing]

thank you!

[@koufax174]

I’ve been all in with BRK A

[@christophenour]

Thanks for the video. I agree that BRK is a beautiful hedge. But I would say that he built up his 25% cash position in 2005. Then this % decreased in 2006 and 2007, just before the crash. No market timing here. So I hope he is working on something big right now.

[@jjsheets330]

Great advice and appreciated, 2025 will be the year of the value investors

[@Aarrenrhonda3]

In 30 years, I managed my portfolio, including 3 shares of Berkshire Hathaway Class A stock (BRK:A) bought at around $17,000 in the mid-90s. Liquidating some for new Gen. Stocks, I hesitantly invested in NVDA in 2021, alongside BTC and SOL, yielding over 200%. .

[@Peterl4290]

Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.

[@scharif]

I call bs

[@susankara7520]

I'm in process of reevaluating my portfolio so this is great news. Thank you❤

[@Value-Investing]

Wonderful!

[@Homecastlefoundation]

I'm treating it as a hedge. Whenever there's a crash, Buffett comes up smelling of roses.

[@Value-Investing]

:-)

[@ralanbrinson]

Buffett isn’t timing the market. He’s pricing it and his individual holdings.

[@Value-Investing]

as always!

[@carguy2256]

I just bought $20k BRK this morning when it was down

[@ajones8008]

good for you

[@slimjimjimslim5923]

It barely dipped though

[@Value-Investing]

thanks for sharing

[@Homecastlefoundation]

Good buy. Berkshire is one of the less volatile stocks

[@alberto-vedovi]

Very interesting take also considering the fact that the insurance returns are uncorrelated from the market makes it quite an interesting recession proof fortress

[@Value-Investing]

yep

[@saffihify]

Great video . thank you

[@Value-Investing]

Glad you enjoyed it

[@hydranth]

Is there something wrong with the video/audio sync?

[@Value-Investing]

I see now :-)) Not relevant for vid, but thanks for notifying!

[@andypicken7848]

Excellent post Sven

[@Value-Investing]

Glad you enjoyed it

[@CovemackerDries]

Thanks for the clear explanation! Wouldnt it be wise to wait until it has faced some of the expected effects of a possible crash before to invest in Berskhire. Price speaking around 380-400$? Or don't you think it will face a small correction?

[@karimmourabitamari6540]

I rebuilt BRK B position in the weeks before elections. Now I will add more and sell covered calls to buy some puts for a super hedge and some upside.

[@mikkelhansen3714]

Wouldn't a good strategy in a market crash be, to sell contrarian stocks that go up in downturns as they should explode in value (I know you cover one that tracks the VIX:)) and then buy the safe BRK, which might be down on the bad market as they can find a great acquisition target?

[@Pizza-gb1ch]

U might want to research BRK performance during the 2008 crash. Not much of a "hedge."

[@mikkelhansen3714]

@@Pizza-gb1ch Im saying buy at the bottom:) hard to know where that is exactly but you know.

[@Value-Investing]

hard to time

[@ussul6524]

great video. TY

[@Value-Investing]

thanks

[@radosval]

Wasn't ADM in a different spot in your investment quadrant just yesterday?

[@Value-Investing]

I prepared this vid before doing the ADM :-)))

[@LewisCorby-g7t]

What happens when Warren passes?

[@Value-Investing]

nothing kzbin.info/www/bejne/oaK5mZavr7Zoi5I

[@johnsnow3662]

Hi Sven you said PE is 23 but it shows as 9.3 today?

[@FRANCESCORE1982]

Hi Sven! How about starting a position in TLT as a hedge ?

[@leviwalpole7288]

So I might have had the same train of thought on Monday, traded some VOO gains for Berkshire.

[@Value-Investing]

:-)

[@Me1234utube]

Is there a disadvantage in investing such huge sums ? ie can he only go for the largest businesses?

[@josephlombardo1267]

Thank you, Sven. Great point about hedge which I totally agree but I have not understood how increasing cash and decreasing AAPL can keep expected returns the same. Are you suggesting that AAPL's expected returns are less than T-Bills or you're including an acquisition that BRK has not yet done? Don't hedges usually come at a cost?

[@RafitoMembroza]

Sven, are you sure that all the cash is usable for investments? Because they should have provisions for their insurance business, and that cannot just go to buy stocks

[@minopica6653]

Can you look at Campari after the drop.thanks

[@francescoonorato465]

That would be very interesting

[@Value-Investing]

same as with these guys, plus the PE is still 20 kzbin.info/www/bejne/gqOTmKl7gN2Bg5o

[@bendimiero380]

Per usual, great video! I hope to run into you at the Berkshire weekend one of these years

[@Value-Investing]

BRK first needs to go cheaper :-)))

[@bendimiero380]

@@Value-Investing I'll give you one of my shareholder tickets. We all get 4. It's a fabulous week of networking, and really just a fun couple days. Highly recommend it.

[@RicL-h6t]

How do we know Buffet is not selling to pile up cash to then make an elephant sized acquisition??

[@RicL-h6t]

Perhaps he sees a deal already

[@Value-Investing]

because he can make a deal and come up with the money later, no problem to borrow for a year or two if necessary

[@GHIBaal]

Hello Sven, thank you so much for your lessons here !!! One thing that sticks in my Mind is why BRK didint accumulate in the C-Crisis 2020 I know its easy to look in the back mirror now :D Just wondering what happend back there.

[@Value-Investing]

it was uncertain, but he did buybacks

[@rbbtour21]

have you done a video on how to value BRK ?

[@Value-Investing]

that is always a fun video to make:-) next week

[@stormchasingandinvesting]

Do you think bershire is safe if buffet should die.

[@Value-Investing]

the business will not change

[@Value-Investing]

kzbin.info/www/bejne/oaK5mZavr7Zoi5I

[@מאורבריוסף]

Sven, can you take a look at QSR stock? Very compelling valuation I think! also intresting: CAT and KHC

[@juliuspittner1555]

Thanks for video you are doing great job...

[@Value-Investing]

It's my pleasure

[@jonnes__4657]

🗽Did Buffett sell all AAPL shares ?? .

[@Value-Investing]

25% left, no?

[@Ballesteros-d]

I've self-managed my portfolio for 30 years, including 3 Berkshire Hathaway Class A shares (BRK:A) bought in the mid-90s for $17,000 each. I'm now liquidating some positions for new Gen stocks. Should I reinvest in gold? is your strategy enough to amass wealth?

[@Biggerstaff4]

Knowledgeable Investors know where and how to put money during a crisis in order to reduce risk and maximize returns. See a market strategist with experience if you are unable to manage these market conditions.

[@mette-lo]

Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 275 cash earning 5.25 interest, 685k in 401k, 120k cash account, 80k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed shortly.

[@marianSEO563]

BRK.B will drop the moment Buffet dies. They will use the cash for massive buybacks after that.

[@tylerhealey1506]

i like to think what buffet says is a message to the little guys. he on the other hand is playing a different game so why would be follow the same rules. buffet is one of the few that can see behind the vale, pretty spooky to see him selling this much this fast.

[@Value-Investing]

the rules are the same, whether you have 1 or 1 billion, low risk, high reward, that is value investing, don't lose money

[@tylerhealey1506]

@@Value-Investing bit different when you play golf with the management team, or have sunday brunch with members of congress. go ask nancy if the rules are the same sven :) besides the conspiracy theories its much different to double a million than to double a billion sven.

[@mariof1468]

​@@tylerhealey1506Why would it be easy to invest 1 billon than 1k?

[@oppamaclare]

0:55 - What warren Buffet says and what he does are two different things - so true. He says the "ideal" time to hold stocks is forever, yet he constantly sells stock. I can't help but think though that he is winding down Berkshire. Hence the selling of stocks and moving to cash/bonds. He knows he is not going to live forever. Greg Abel should be taking the limelight more if the plan is for him to succeed.

[@Value-Investing]

it is common for him to sell 9 of his 10 positions quickly kzbin.info/www/bejne/d4HdfYOEe7mXm7s

[@sarwarkhan1185]

The government should start taxing more than 30 billion $ in cash 💰 to divest the investment monopoly

[@Value-Investing]

thanks for sharing

[@karapain9]

But if he buys treasuries isn’t he having accounting losses as interest rates are creeping up higher?

[@mariof1468]

No, treasuries are considered as cash.

[@tatskamaster]

How is Microsoft a "high risk" stock lol?

[@2023gainer]

Thumbs Up video/ comments. Thanks.

[@Value-Investing]

Thanks again!

[@jonnes__4657]

🗽 BRK is 3% below the ATH... since 2011 the stock ist up 15% p.a.! Disclosure: I'm long BRK.A. .

[@Value-Investing]

:-)

[@Hyper1555]

I bought visa and S&P global at ATH, but they were fairly valued/low valued. Now I'm up 23% on Visa and 37% on S&P... Stock price doesn't dictate valuation, nor gains or loses.

[@jonnes__4657]

@@Hyper1555 Valuation dictates it on the long term.

[@Lion_McLionhead]

Suspect he's betting on on falling yields sending up bond prices. There hasn't really been enough of a boom to get much of a bust.

[@luigigetsu]

I'm not used to Sven saying the words ''could reach'' in a bullish sentence, only with BRK, with other businesses he is always talking about averages or return to the media. Here the use of those words even comes after looking for hidden earnings, the next time we see a video on TSLA or NVDA we should also look for those hidden earnings to make the valuation right? lol...

[@WolfBoehme]

I like to sell options so the way I might play this is to sell long dated, at the money puts like the Jan 2027 puts with a 460 strike price which last traded at $31.70. If the puts are exercised I will be buying BRK for a net price of a bit less than $430/share and I will have been holding that premium for over 24 months.

[@WolfBoehme]

Remember I said that I may do this but so far I haven't entered an order. I might enter an order at 370 strike price. Obviously the premium I would earn is much lower but ideally this is a relatively low risk trade. There is a high likelihood the options never get exercised

[@MINGREN-z7c]

so what?!

[@Value-Investing]

thanks for commenting

[@magalengo]

He is almost 95 years old, very unlikely he will live to see another crash. Berkshire is return avoidance, market timing and thumb sucking.

[@Value-Investing]

thanks for sharing

[@HS-PGA]

If he never declares a dividend what’s the difference between Berkshire and a Bitcoin , just people speculating on a stock . The fact it owns businesses means nothing unless one day Berkshire liquidates alll assets and. Closes down ?

[@jnick5358]

I looked for the quote but couldn't find it but I remember Buffett suggesting selling 4% per year if you want a dividend.

[@Value-Investing]

as Buffett says, it is about the potential dividend

[@mariof1468]

Dividend does no matter in investing. You can sell the stock.

[@RafitoMembroza]

They buy back when the company is cheap, and that sets a floor for the price. You forgot as well that he always have said that if you own a class A share, you just need to talk with them, and they will buy you the shares. So no, it’s not a token

[@undisclosed9531]

good video

[@TheKayakAngle]

Berkshire should spend 100 billion and buy Intel

[@Value-Investing]

no competitive advantage

[@wollercr]

It's like the weather report about yesterday. Just report on what you see.

[@Value-Investing]

:-)

[@shaunjames2221]

He cut due to the potential capital gains risk with the democrats - watxh him buy in the next months

[@kodenich]

Great play... unless Warren dies...

[@jazz19101]

As far as a I can tell Sven has greatly underperformed the market in the last 2 years. Instead of avoiding the magnificent 7 he should have been buying them. If the market crashes 50% he would still be way up. NVDIA has gone 10x and the whole time Sven is worried about the market crashing instead of buying the growth stocks. If he would have bought the SPY he would have done much better. Why don't you use trailing stop losses to protect your portfolio? If the market crashes and you have a 10% stop loss you are fine.

[@ifonlyunu1]

Stop losses do nothing if stocks crash after the market has closed... just fyi 🤣🤣😂

[@jazz19101]

@@ifonlyunu1 I know but the chances of the SPY dropping more than 5% after hours is extremely unlikely.

[@lorellaldos5263]

In addition according to my observation, the creator of this channel has not improved his game since starting his channel 2018. Next to others I was one viewer that asked for progress but I found no willingness to work on it. I would assume that somebody who want's to make performance at the stock market would be very happy about helpful feedback in a sense that enables you to improve. When I accidentally heard that he was underperforming the S&P 500 I still was suprised because I expected at least like 15% p.a.

[@Value-Investing]

guys, thanks for commenting, but Sven is very happy with the performance since 2018, and with the current portfolio :-)

[@jazz19101]

@@Value-Investing I'm glad you are doing well. What have your returns been for this year and last year? Why don't you use stop losses?

[@dimodimov880]

You just give me a great idea instead to waiting to make s milions on siri which is one of the last stock buffet buy , just sale and buy me brk :)

[@Value-Investing]

:)

[@lorellaldos5263]

Making one crash video after another while not taking advantage when a crash happened in 2020 and underperforming the S&P 500 since 2018.

[@Value-Investing]

you got things wrong a bit, but thanks for commenting!

[@lorellaldos5263]

@@Value-Investing You've missed the crash opportunity 2020, did you not? Otherwise you would have outperformed the S&P 500, but you didn't. So why haven't you? Any idea's?

[@owl4638]

same story same bs

[@Value-Investing]

thanks for commenting

[@johnj6743]

Tax all cash above a billion. Make Buffett cry.

[@DowsStockTalk]

Why would you tax cash? There is no return on cash?

[@Value-Investing]

thanks for sharing

[@USASMR-o2c]

Unless there is a black swan event, there is no crash coming anytime soon in the US. TRUMP 2024!!! 😊

[@jaunutisjusk]

first

[@HankScorpioXX]

Gay

[@jaunutisjusk]

@HankScorpioXX busted

[@Value-Investing]

:-)