BRK
👴 Warren Buffett’s age (90+) is a significant risk factor for Berkshire Hathaway.
📉 The stock price may fall in the short term after Buffett is no longer managing the company.
⚖️ Berkshire Hathaway is not particularly cheap at its current valuation.
💰 Buffett has been accumulating cash, preparing to take advantage of market downturns.
@Academiadeinversion:
“I think everything is quite well tied up as Buffett has left it, in my opinion, but it is possible that the stock may fall in the short term, and it must be taken into account that Buffett is already over 90 years old, that he still has a very good head, but the biggest risk factor when predicting mortality, by far, is age. It doesn’t matter if you smoke, if you are an alcoholic, if you are 20 years old, you have much less probability of dying than a person who takes care of themselves, who does sports, who has never smoked in their life, and is 90. So, Buffett, with more than 90 years, who also does not take care of himself especially, that is, he does not do sports, 25% of the calories he consumes a day are from Cherry Coke, he has breakfast at McDonald’s every day, that is, he is not a person who takes care of himself especially. So, between that, that Buffett may not have many years left, unfortunately, and although everything is, I think, well tied up in the case of Berkshire Hathaway, it does not mean that it may fall in the short term. The key here is not only to think about the Berkshire business itself, but also to think about the valuation. Is Berkshire cheap now? Well, I don’t think so, especially for its size. I don’t think money will be lost investing in Berkshire from here to 10 years, but I don’t think a spectacular return will be made either. I think it is difficult to reach a double-digit return, although what Buffett has been doing is collecting cash, and if there is a fall in the stock markets, he will be prepared to take advantage of it, so we will see what happens.”
Watch the exact part of the video where Paco talks about Berkshire Hathaway here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on Berkshire Hathaway (BRK) at the following link. BRK stock.
