Berkshire Hathaway a good place to invest?

Question

I am thinking about investing about $ 100 to $ 500 in Berkshire Hathaway. I am debt free, and have 40 % of my $ 400,000 portfolio in cash, 30% in mutual funds and ETF's, and remainder in bonds. I am 52 y/o and retired with a $ 2,600 monthly income from my federal gov't retirment. Any suggestions ?

Answer 1

Given that a share in Berkshire Hathaway cost $116,700 each I assume you are talking about something other than purchasing a share with your $100 to $500.

The Washing Post has a good a article today read it hear

http://www.washingtonpost.com/wp-dyn/con...

Answer 2

First, I don't think Berkshire has a direct investment plan where you can own fractional shares. I also feel the shares are very vulnerable to a price decline given their high proportion of business mix towards financial and the housing markets.

With that being said once the deflation in housing prices reverses the stock is likely a good candidate for purchase again.

Answer 3

Well, in the past it has been a good place to invest.  Whether or not it will be in the future remains to be seen.  Now let me see if I understand this correctly.  You have 40% of a 400k portfolio in cash and you want to know if you should invest $100 to $500 in Berkshire Hathaway.   Do I understand you correctly?  It is going to be just a little difficult to do under normal circumstances since each share of the B stock sells for currently $3895 each.  But I do believe Sharebuilder might sell you a partial share.  They have been known to do so in the past.  But frankly with the cash hord you currently have I think you could afford at least one whole share. Even if it should prove not to be a good place to invest, your risk is less than 1% of your invested capital.  The 52 week price range has been 3558 to 5059.

Answer 4

Since shares in Berkshire-Hathaway are currently $116,700.00 each, you might consider buying Fairholme (FAIRX), a mutual fund with substantial BRK holdings, that might be more liquid and has a NAV of about $30 a share.