Warren Buffet is hailed by the investing public as one of the greatest investors that ever lived. While this may be true, stock in Berkshire Hathaway Inc. (NYSE:BRK.B) is heading lower and soon. Let's look at the many reasons to short Berkshire Hathaway Inc.
1. Warren Buffet is getting old. There, it has been said. Investors should realize this and understand that upon his passing, the stock will probably take a 10% hit (minimum). If you are short the name, you will take this as profit. While it will be a sad day when Berkshire Hathaway Inc mogul Warren Buffet dies, why make it a worse day by being long or on the sidelines? Short it and profit.
2. Warren Buffet and Berkshire Hathaway Inc. have underperformed the market for quite some time. The companies that make up Berkshire Hathaway Inc. (NYSE:BRK.B) are all old school, low growth plays. He has not upgraded his portfolio. As times change, new technologies drive the future. This should be a big concern to all investors. Berkshire Hathaway Inc. needs to get with the times and start thinking what companies will be the next Coca Cola. Eventually, current names may become obsolete.
3. The current chart of Berkshire Hathaway Inc. is unbelievably bearish. There is a classic bear flag pattern that spells downside. Please note the chart below for Berkshire Hathaway Inc. Be aware that if this chart plays out, the stock will head to a level of $118.25 within a month.
Berkshire Hathaway Inc is a great company. But great companies sometimes pull back. The signs are all over the place, this company's best days are behind it. Berkshire Hathaway Inc. is a flat out short.
Gareth Soloway
InTheMoneyStocks
Fairly common points here;
2.Berkshire has under performed the market because the market has been doing really well as of late. They focus on investing in fundamentally sound companies, not hot companies. They poise their investments to grow over the long term, regardless of how the market is doing. If the market were to take a hit, Berkshire would be in much better shape than anyone else.
I think overall you will be right if 1) Buffet passes away while simultaneously 2) the market continues to make significant gains. Both things have to happen for your thesis to be right, until then I don't see why the stock won't stay where it is.
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