Replies to post #2637 on Berkshire Hathaway Inc (BRK.B)

[gfp927z]

Bar, >> sleazy company at times <<

Yes, and many of those trash haulers started out with Mob connections. Another red flag is the potential for major environmental lawsuits down the road. But one plus for the waste companies is they can qualify for the ESG type funds thanks to their recycling operations, so people like Bill Gates can invest without losing their righteous veneer :o)

In Peter Lynch's book 'One Up On Wall Street' he talked about dull / boring businesses being some of the best LT investments, partly because they lack the trendy cache of other areas, so are underfollowed and have lower valuations. He said one of his best all time stocks was a company that owned a rock quarry. Now that's dull, but it was a very profitable and steady business, and way under the radar. Lynch said dull is good, but a business that is both dull and disgusting is even better. The waste mgt companies would qualify, as would companies like Rollins (pest control) and Service Corp (deathcare services).

But Buffett isn't in these areas, so I must be missing something. Valuations too high, etc.



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[gfp927z]

Bar, >> QQQ <<

That's been the place to be for decades, but I wonder if having too much focus on tech, Mag 7 and AI will soon become a disadvantage? That's what happened after the Dotcom bubble, and it took 15 years for the Nasdaq to recover its 80% plunge. I'm even getting nervous with the S+P 500, since it's so overweighted in tech / Mag 7.

But I worry even with a 12% stock allocation. You have a lot more $$, and are less twitchy, so can comfortably have a higher stock allocation. Bogle settled on 50 / 50%, but that would send me right to the Tagamet. But everyone is different, and too much in bonds has the devaluation via inflation risk. I was surprised to see Bogle recommending 5% in gold, which for him was a big departure. Other hard assets like land and paid-for real estate also seem like a good alternative rather than too much in paper assets, stocks / bonds.



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[gfp927z]

Bar, board, Hope everyone has a great Thanksgiving :o)






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[Prudent Capitalist]

The departure of Todd Combs is a loss for BRK, but the opportunity for Todd with JPM had to be very attractive even though he has to resign from the JPM Board of Directors. HIs replacement as CEO of Geico is solid, and Tedd Weshler can take care of the investing with Greg Abel at the helm. Unfortunately, at some point Ajit Jain will retire but I suspect Ajit has already determined who will assume his duties with the insurance businesses.