Strategy for a high income earner?

What will happen when Wazza dies? He is 85 now.

 

Sell and run as fast as you can!!!

 

Invest in your health, live an average wage earner lifestyle, ad don't lose the gravy train job would do it for me...not much need to do much else on that income.

 

BRK is built for the very long term. Expect low to moderate outperformance of S&P 500 in the 20 years post Warren and Charlie. Beyond that, no idea. The recent "Berkshire beyond Buffett" book will give some deeper insight to the planning, and it needs to be understood that BRK in 2015 is an operating conglomerate with a stock portfolio, not a stock pickers busness. Recent acquisition of Precision Castparts shows where the company is.

The no Buffett discount is already baked in at current price imo, but regardless, I'd limit to 20% portfolio position as you can never know (And this is huge single stock exposure, would never consider for any other business)...but if you are looking for "safe" over the long term, then you can't do much better than BRK.

Standby for divs within a decade too, free cash is so strong that opportunities to spend it are becoming limited....that will be supportive of the share price too.

 

Not going to happen again. BRK have a floor under the price now in the form of commitment to buy back stock at 1.2x book value. They will buy a huge pile of stock and retire it. Normally BRK has $50B cash on hand for opportunities such as these....

 

And I should note, don't buy A class shares unless you are a billionaire.

B class shares at $136 approx are the route for us pleb types....

 

Terry, the Baby Berkies ( http://finance.yahoo.com/q?s=brk-b ), assuming that Warren kicks the bucket (no disrespect just in case he's reading...) might take an ugly tumble.
But as with any investment, a reasonably intelligent investor should weigh up whether or not they are buying at substantial discount, or if they have miscalculated and should have sold "yesterday", in which case they may have to, figuratively speaking of course, consider grabbing their ankles.

The Falcon makes an interesting point about the buy back, but it should also be considered that Berkshire owns numerous businesses, including quite significant stakes in Coca Cola, Amex, IBM, Goldman Sachs, etc.

On the other hand, Blackmores might go to $1000 a share, finally making a bunch of poor (but this time lucky) ever-suffering Poseidon shareholders some shred of vindication, so arguably that might be a better opportunity.

Or not.

I suppose the definite answer would be that it's a hard call....

 

Why didn't someone just tell me to buy Blackmore's last week?
(Someone did, but I cannot recall for the life of me who it was - was it on here?)
Went up 29% this morning. Sheesh.

 

Reflected on the shelf price too!

 

A colleague of mine purchased a bunch of BKL stock at $15 (no typo) some time ago.

I believe that they have been doing cartwheels recently (including and especially today...)

One hopes that the current valuation is not "all hat and no cattle".

On the other hand, who would know?

 

@Bran

Marty mcfly.. Really??!! Lol

 

Yes, this is true..but much easier said than done. Id enlist the family to stay grounded...and PC (for a small 'gratuity' fee ofcourse).

 

Lol.
What?
Go Brisbane. (insert waving flag).

 

Surely you could have picked something other than Mr mcfly....lol.
If i were you, I'd forget about buying in brisbane - give those Chinese a run for their money in Sydney and Glen Waverley...

 

1. Employ an accountant
2. Consider a trust for asset protection and redistribution of income
3. Diversify into shares, remembering that Australian shares offer franking credits that are good for tax reasons
4. Follow the advice on here but use the expertise of a buyer's agent to select appropriate property for your individual strategy. On that money you shouldn't be wasting time on the details.
5. Enjoy your life

 

I like this.
I've had the same thoughts about 4.

 

'Acquaintances'...that's what you call it now..