BERKSHIRE HATHAWAY(BRK.B) | Long-term Investment "Plan".Hi,
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha.
The company is known for its control and leadership by Warren Buffett, who serves as chairman and chief executive, and Charlie Munger, the company's vice-chairman. In the early part of his career at Berkshire, Buffett focused on long-term investments in publicly traded companies, but more recently he has more frequently bought whole companies. Berkshire now owns a diverse range of businesses including confectionery, retail, railroads, home furnishings, encyclopedias, manufacturers of vacuum cleaners, jewelry sales, newspaper publishing, manufacture and distribution of uniforms, and several regional electric and gas utilities.
According to the Forbes Global 2000 list and formula, Berkshire Hathaway is the third-largest public company in the world, the tenth-largest conglomerate by revenue and the largest financial services company by revenue in the world.
As of February 2019, Berkshire is the fifth-largest company in the S&P 500 Index by market capitalization and is famous for having the most expensive share price in history with Class A shares costing around $300,000 each. This is because there has never been a stock split in its Class A shares and Buffett stated in a 1984 letter to shareholders that he does not intend to split the stock.
One of the strongest companies in the world has started to reach good buy zones, technically. Yes, those kinds of market situations are scary but remind yourself of your long-term investment strategies! Firstly, do you like sales? Yes, you like sales, then you have to buy when the streets are bloody. It could be risky, actually, it IS risky but still, you have to have a plan!
At the moment, I have a plan with Berkshire and it consists of two areas 150-160(1), 110-120(2):
1) Probably, I start to add my positions around $150. There are pretty good criteria which all should act as support levels - different Fibonacci retracement levels, Monthly EMA100, the mid-number itself $150, previously worked support and resistance levels. It should be strong enough for buying a bit for long-term bias in mind.
Now it depends on the market, what does it start to show us. If it doesn't show anything, panic continues and Berkshire stock price starts to fall lower, below my first support area, then I don't want to panic sell my shares, I act as Peter Lynch:
2) “If you can’t convince yourself “When I’m down 25 percent, I’m a buyer” and banish forever the fatal thought “When I’m down 25 percent, I’m a seller,” then you’ll never make a decent profit in stocks!”
So, I have a long-term vision and investment plan, my research about Berkshire is strong, then those sales are just great opportunities to buy it from lower prices (those purchases have to be technically good!!). As he has said, if the price drops 25% from your initial prices then you are a buyer, not a seller, keep in mind!
...and luckily, exactly 25% (obviously, it doesn't have to exactly 25 percent but hopefully you get that point!) down from my first buying area is another strong support level - Monthly EMA200, long-term Fibonacci retracement 62%, 50% drop from the all-time high, previously worked support and resistance level AND if the SP500 drops to where I see it goes (1500-1700) then it would be a massive criterion for my lower buying zone for Berkshire, ALL IN!! :D
"Why can't I wait for this lower buying zone right now?" Yes, you can! ;)
As said, do your own fundamental research and if this matching with my technical analysis viewpoints then you are ready to go! If it doesn't match then...SKIP IT!!
Regards,
Vaido
