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Re: Duma post# 729

Tuesday, 01/24/2017 10:00:17 AM

Tuesday, January 24, 2017 10:00:17 AM

Post# of 2124
I don't own BRK, but BRK soared late in 2016 thanks to a rebound in oil and Wells Fargo. That stuff has cooled considerably this month. Remember that BRK is leveraged.

Yes, a lot people don't know much about the Dow and the S&P, mostly that those averages, as usually presented, don't include their considerable dividends. The Dow was created as a simple "back of the envelope" arithmetic "average" of 12 core stocks (all transports originally). Soon various adjustments were required for splits and dividends and many other things.

I own 3M, which at about $180 a share is the most important stock in the Dow 30. You'll certainly never see BRK-A at $240,000 in the Dow!

Now read the pasted message above this one to learn how BRK works, It's from Yale.edu and is an excellent introduction to "The Buffett Method"



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