Monday, August 8, 2011

Attention, Shoppers. It's Time to Buy

This Barron's article points out that many tech stocks have strong balance sheets and low P/Es. 

The article also calls Berkshire Hathaway (BRKA) a "financial Fort Knox" and says the stock looks inexpensive.

Attention Shoppers, It's Time to Buy

Charlie Munger said the following about Berkshire at the final Wesco Financial annual meeting:

Berkshire's stock is at a point Buffett and I never anticipated it would go to.

Investors owning Berkshire at current prices will do quite all right just sitting on their rear ends.

When Munger said that, the stock was roughly 10% higher than it is now. The Berkshire Hathaway class B shares (BRKb) are currently selling at just over $ 70/share as I write this.

As far as the other stocks go it should continue to be a rough ride. I have no idea whether these stocks will be higher or lower in 3 months or even 3 years for that matter. Anyone who doesn't like looking at paper losses for potentially an extended period probably should not be buying.

On the other hand, the price that some of these businesses are now selling at compared to what they will likely be worth in ten years or so is attractive.

The article also mentions stocks from several other sectors (financials, pharma, defense, and even a gold miner) worth considering that, for the most part, are of little interest to me.

Adam

Long positions in MSFT, INTC, HPQ, AAPL, and BRKb

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