I wanted to share what I am doing and how I think about BRKB.
I am concentrated in 8 companies. Tesla, Meta, Nvidia, Amazon, PLTR, Google, Apple and BRKB. Every time the market drops, my said companies drop and BRKB go up. I have noticed it acts like a safe treasury, but of course, I still know this is a bet.
I pay presently 6% on margin. I use margin, not too much, to buy more of my above companies when prices drop, like Meta recently. When it started to drop, I bought at 625 all the way down to 525. I can never predict the bottom. I also rebought Amazon, Tesla, and Nivida. Bottom line, these are great companies I plan to hold forever, and I've been for 7 years now.
I have no problem holding 8 companies in America, as this is not a concentration for me. I owned 2 businesses in Trinidad for 30 years, both of which I operated. One was retail, and the other was a mall. I sold the retail recently. In Trinidad, changing TT dollars to USD is hard, so that’s a risk, owning 2 businesses in Trinidad, that’s a risk. Owning 8 in America is a zero-risk proposition.
Anyway, I was thinking, why not use some more margin beyond my 25% to store it in BRKB? I will attract 6% of whatever I buy. Still, I feel with Greg Abel, and his efforts to want to prove he is great and good, he will deploy some of his 380B cash buying back shares, buying some tech, buying some businesses, even selling what Warren would never have that were underperforming. So I believe BRKB can go up at least 10% over the next 12 months, especially as it is also underperforming the market. It is a great company, and at least I can make a spread on the difference between the margin interest and what happens. 🤷♂️. So this is my plan. Just wanted to share and appreciate any feedback on the holes in these thoughts.
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