What would you buy if you sold your one share of Berkshire Hathaway

1970s · August 14, 2014 12:58AM

For those of you that own more than one share, you are not allowed to comment

Berkshire Hathaway Share Price

ChiefsFan1st · August 14, 2014 1:01AM

Thats easy, a house, and a dang nice one at that!!

wrestlingcardking · August 14, 2014 1:08AM

<< Thats easy, a house, and a dang nice one at that!! >>

Unfortunately not a dang nice one in California!

belz · August 14, 2014 1:30AM

I'd take 10% for a family trip...then and more importantly, I'd hold onto the rest of the dough until the 2015 National and spend it in minutes at the BBCE booth(less 20k as you'll see why). I'd bring a suitcase full of 100 dollar bills, and hire a body guard for the day. On my way home in the limo, while looking at my recently purchased unopened boxes, I'd order in some of the best filets and lobster tails and enjoy grey goose martinis served by a hired beauty from the playboy mansion...my wife would be cool with it all as I'd give her 10k to go on a shopping spree weekend with her girlfriends.

Davis · August 14, 2014 1:39AM

If I sold one share of Berkshire Hathaway I would almost have enough money to buy 1.5 packs of 1975 minis from the group rip. Well...B shares for this non-1%'er.

If I had A shares, I wouldn't sell.

guitarwes · August 14, 2014 2:29AM

I'm in the healthcare field and while I was doing an exam on a old gentleman the other day I started making small talk and the subject turned to stocks. He said he "won" 1 share of Berkshire Hathaway in the 1950's for an article he wrote about how to save them money printing documents, which was what professional field he was in. He said it's value was like $40 or something at the time. He's held that 1 share ever since and watched it multiply exponentially as it split and such. Pretty good prize. I asked him if he was ever tempted to sell it and he said "not once since it was free to begin with".

KurtisJoseph · August 14, 2014 2:51AM

As many 1986 fleer unopened basketball wax as money could buy

cpamike · August 14, 2014 2:53AM

<< As many 1986 fleer unopened basketball wax as money could buy >>

Baseball

cpamike · August 14, 2014 2:54AM

<< As many 1986 fleer unopened basketball wax as money could buy >>

You had to edit it and ruin my fun.

dontippet · August 14, 2014 3:38AM

<< I'm in the healthcare field and while I was doing an exam on a old gentleman the other day I started making small talk and the subject turned to stocks. He said he "won" 1 share of Berkshire Hathaway in the 1950's for an article he wrote about how to save them money printing documents, which was what professional field he was in. He said it's value was like $40 or something at the time. He's held that 1 share ever since and watched it multiply exponentially as it split and such. Pretty good prize. I asked him if he was ever tempted to sell it and he said "not once since it was free to begin with". >>

Believe it or not, that's only about a 15.3% gain per year.

Dpeck100 · August 14, 2014 3:44AM

BRK-A Chart

It is up 825 fold since the chart began in 1980. I had quit watching this and thought it was still in the $135,000 range. OMG

By the way Berkshire has never split its stock.

dontippet · August 14, 2014 4:13AM

<< BRK-A Chart

It is up 825 fold since the chart began in 1980. I had quit watching this and thought it was still in the $135,000 range. OMG

By the way Berkshire has never split its stock. >>

That's nearly a 22% yearly gain which is fantastic.

Dpeck100 · August 14, 2014 4:14AM

<< 

<< BRK-A Chart

It is up 825 fold since the chart began in 1980. I had quit watching this and thought it was still in the $135,000 range. OMG

By the way Berkshire has never split its stock. >>

That's nearly a 22% yearly gain which is fantastic. >>

A 22% compounding rate of return is more then fantastic. It is absolutely insane!!

Griffins · August 14, 2014 8:36AM

using the rule of 72, that means you are doubling your money in a little over 3 years.
Wonder what happens to BH when the Oracle passes away.

Griffins · August 14, 2014 8:37AM

<< 

<< Thats easy, a house, and a dang nice one at that!! >>

Unfortunately not a dang nice one in California! >>

Sadly not even enough for a minimal down payment.

Tabe · August 14, 2014 8:51AM

<< 

<< 

<< Thats easy, a house, and a dang nice one at that!! >>

Unfortunately not a dang nice one in California! >>

Sadly not even enough for a minimal down payment. >>

Even in California, $200k is more than an enough for a down payment on a house.

Griffins · August 14, 2014 8:52AM

Not on the westside of LA. Or SF.

GR · August 14, 2014 8:54AM

pay off college debts, a used car that's got low mileage, about 2000 to the casino may as well, season tickets to the orioles, a few more sports memorabilia trips, then with the remaining 100,000 take 50,000 in cash and 50,000 in commodity vacuum seal it and dig a hole and keep it there for 20+years

DanBessette · August 14, 2014 8:57AM

I have to be honest, I had never even heard of this company.

ChiefsFan1st · August 14, 2014 9:01AM

<< 

<< 

<< Thats easy, a house, and a dang nice one at that!! >>

Unfortunately not a dang nice one in California! >>

Sadly not even enough for a minimal down payment. >>

Glad I settled here in Missouri. You could have your pick of almost any house in the whole
county I live in for that kinda scratch! And in most cases, you could buy out the neighbors
also. Of course, you are looking at 40-60k/yr income for the average couple here

Dpeck100 · August 14, 2014 9:37AM

<< I have to be honest, I had never even heard of this company. >>

Are you familiar with a guy name Warren Buffett?

LarkinCollector · August 14, 2014 9:41AM

<< 

<< I have to be honest, I had never even heard of this company. >>

Are you familiar with a guy name Warren Buffett? >>

+1

bigdcards · August 14, 2014 9:43AM

<< Not on the westside of LA. Or SF. >>

There's more to Cali than those 2 places.

esquiresports · August 14, 2014 10:20AM

I'd try to purchase Griffins' unopened pack run.

Griffins · August 14, 2014 10:24AM

we would be in range Scott! I'd probably trade it for a share.

WFFL · August 14, 2014 10:37AM

An education in stocks and investing should be high on everyone's priority list, regardless of one's age. Buffett, Graham, Bogle, Bernstein, and Siegel are a few of my favorites. Currently reading The Warren Buffett Way, by Robert G. Hagstrom. Next read will be Get rich Slowly by Jim Cramer (I want to be entertained). I have changed my card purchasing ways by investing in DRIPs and using that cash instead of attempting to buy and sell for a profit.

I would invest that 1 share into more dividend producing stocks (aristocrats) and treat myself to a nice vintage card on my bucket list.

LarkinCollector · August 14, 2014 10:44AM

<< Next read will be Get rich Slowly by Jim Cramer (I want to be entertained). >>

One of my favs during the tech bubble, I can't change the channel quick enough when I see him now.

WinPitcher · August 14, 2014 10:57AM

In 09 I think it went down to 45k....

ashabby · August 14, 2014 10:59AM

I am a financial advisor. It is hard to beat this stock long term . Time will tell once warren is gone.

Dpeck100 · August 14, 2014 11:09AM

<< In 09 I think it went down to 45k.... >>

Historical Prices

The lowest I can find is $70,050.00

Dboneesq · August 14, 2014 11:15AM

<< 

<< In 09 I think it went down to 45k.... >>

Historical Prices
The lowest I can find is $70,050.00 >>

March 17, 1980 the stock closed at $260.00.
With today's closing price of $202,850.00, that's an average annual return of almost 21.00% for 34+ years. AIN'T GETTIN ANY BETTER THAN THAT!!!

Dpeck100 · August 14, 2014 11:19AM

<< 

<< 

<< In 09 I think it went down to 45k.... >>

Historical Prices
The lowest I can find is $70,050.00 >>

March 17, 1980 the stock closed at $260.00.
With today's closing price of $202,850.00, that's an average annual return of almost 21.00% for 34+ years. AIN'T GETTIN ANY BETTER THAN THAT!!! >>

Absolutely amazing. I used $245 for my starting price earlier when I said it was an 825 fold increase so knock some off that. Just to see what the number actually was I calculated it and it was 780 times your money. Amazing the power of compound growth over so many years.

itzagoner · August 14, 2014 12:40PM

BRK.A is the main reason i don't spend more cabbage on cards.

my grandfather - bless his dear departed soul - knew Mr. Buffett quite well. they spoke frequently, especially when my grandfather needed a little extra kick in the pants after it was disclosed that he had sold off some shares. Warren ripped him a new one and he bought it all back.

Buffett is GOD.

Tabe · August 14, 2014 5:15PM

<< Not on the westside of LA. Or SF. >>

Median home price in SF is $1,000,000. So $200k gets you a 20% down payment on half of all homes in SF. And 20% isn't a minimal down payment.

CocoaBeachDodgers · August 14, 2014 6:39PM

I'm a very simple sort of guy, all I want is one of the two PSA 10 Sandy Koufax rookies!
I have no clue what one would go for? I guess if there is any change, I would get the highest grade rookie cards of
PeeWee Reese, Duke Snider, Don Drysdale, Zach Wheat, Jackie Robinson, Roy Campanella & a box of 1981 Topps baseball!

Cakes · August 14, 2014 11:43PM

<< BRK-A Chart

By the way Berkshire has never split its stock. >>

That is correct.

thunderdan · August 15, 2014 12:00AM

<< 

<< I have to be honest, I had never even heard of this company. >>

Are you familiar with a guy name Warren Buffett? >>

lmao.

I've heard Buffett speak a few times and had a brief chat with him once. He's got a great sense of humor in addition to being incredibly smart. Totally down to earth which can't be said about all billionaires. Not showy at all--hell, look at the house he has lived in all these years. I really respect him as an investor, how he has chosen to live, and how he has chosen to use his wealth.

While attending graduate school, I remember his response well during the dot com boom when a fellow graduate student asked him which tech companies he was investing in (as if to get a stock tip). He basically shrugged his shoulders and said he wasn't investing in any of them because he only invested in businesses whose business model, product, and industry he could truly understand. A refreshingly honest, yet very prescient statement considering what happened 4 months later in April 2000.

Cakes · August 15, 2014 12:08AM

1970's that would be cool to see.

I agree the 1986 Fleer turned into a huge long term hit but others didn't do so well, for example 1989 UD baseball, 1989 Score football, etc...

itzagoner · August 15, 2014 12:30AM

<< 

<< BRK.A is the main reason i don't spend more cabbage on cards.

>>

I agree that money invested in a good mutual fund has probably outperformed any cardboard appreciation.

I wonder if anyone has ever done the math. It's probably quite easy for someone who's good at math.

Someone should put together a wax box mutual fund from the 1980's, and compare it to a stock/bonds mutual fund from the 1980's, and
see which did better.

In the cardboard mutual fund, you'd have to include wax boxes from all companies and sports from 1980-1989, and compare it to a stock/bond mutual fund I guess ? I can't think of any other way of doing it.

Or, we can take the simple way out and compare a 1986 fleer basketball box to BRK-A. I don't think that's a good way to do it though. No one back in 1986 probably had the knowledge to only buy hoards of 86 fleer basketball and just sit on it.

Now comparing a wax box mutual fund from all sports in the 1970s to stock/bond mutual funds from the 1970s would be quite interesting.

Anyone able to do that math ? It would probably take forever to figure it out, but it would be interesting. >>

i think the better way to view this conceptually is to examine the various holdings contained within the Berkshire fund and then rank them in order while comparing them to the best performing unopened boxes in the same order.

after a handful of comparisons you'd realize that there is really no reason to continue.

you'd also be scratching your head why you wouldn't want to benefit from a man's conventional wisdom and common sense vs. a storage unit full of tangible paper goods.

thunderdan · August 15, 2014 12:48AM

<< after a handful of comparisons you'd realize that there is really no reason to continue.

you'd also be scratching your head why you wouldn't want to benefit from a man's conventional wisdom and common sense vs. a storage unit full of tangible paper goods. >>

lol. Yep

FINESTKIND · August 15, 2014 12:18PM

With that kind of money I could almost afford about 2/3 of a house around Boston.

Burks · August 15, 2014 2:15PM

That would pay off my entire family's debt. That'd leave me with enough money to go back to MSN school and not worry about money for 27 months while I'm in school.

It's nice being "low" on the debt area. Parents are under $10k, my wife and I are under $70k (that includes the house, two cars, and my student loans).

Griffins · August 15, 2014 2:45PM

<< 

<< Not on the westside of LA. Or SF. >>

Median home price in SF is $1,000,000. So $200k gets you a 20% down payment on half of all homes in SF. And 20% isn't a minimal down payment. >>

Are banks loaning on 80% LTV? I had lunch with a few friends that are real estate agents last week and they said they are having a hard time getting loans approved on anything less than 30% down these days, and a lot of their sales are 60%-80% down (or even all cash) on $1mm average sales. 1st time buyers with 20% down are getting turned down flat by sellers since the market is hot and there are multiple offers.
I really feel for people trying to buy their first house, it's tough enough normally, but especially now.

LarkinCollector · August 15, 2014 11:59PM

<< Are banks loaning on 80% LTV? >>

Around here they are on standard loans, up to 90% if credit is extremely good and someone's willing to overpay on interest. For jumbo loans, probably not.

Dpeck100 · August 16, 2014 12:05AM

<< 

<< 

<< Not on the westside of LA. Or SF. >>

Median home price in SF is $1,000,000. So $200k gets you a 20% down payment on half of all homes in SF. And 20% isn't a minimal down payment. >>

Are banks loaning on 80% LTV? I had lunch with a few friends that are real estate agents last week and they said they are having a hard time getting loans approved on anything less than 30% down these days, and a lot of their sales are 60%-80% down (or even all cash) on $1mm average sales. 1st time buyers with 20% down are getting turned down flat by sellers since the market is hot and there are multiple offers.
I really feel for people trying to buy their first house, it's tough enough normally, but especially now. >>

Obviously real estate is a local issue but there are general guidelines and anything that is considered a jumbo requires at least 20% down. If you are referencing CA there are certain markets where a jumbo is not the conventional $417,000 and instead $625,500. That being said anything in the $1,000,000 range using conventional financing would require at least 25% down and the buyer must pay closing costs out of pocket. Depending on the debt to income ratio and the assets of the buyer that number will go up from there.

I was in a recent meeting where we were discussing the bank I work for's mortgage guidelines and they are processing loans up to 47% debt to income so the reigns have definitely been loosened some again. Personally I can't fathom having this much of one's income going to shelter cost but people do it.

There may be private mortgage companies who are holding the loans themselves and not selling them off that may allow for lower down payments so it is possible that a 20% down payment might be able to secure financing for a $1,000,000 home.

ChiefsFan1st · August 16, 2014 1:29AM

Obviously real estate is a local issue

Thats true. The numbers I see bouncing around here blow me away!!

The wife is wanting a new house, so we did some shopping. Checked with 2 banks here locally on what
kinda money we could get. There was a HUGE difference in finance terms just with the 2 local banks. We
just went in looking for how much we could borrow and the terms, not having a house in target.

Long story short, they both pre-approved us for 120,000 and asked if that would be enough? I told the
lady at the first bank "ENOUGH!! Lady I wouldnt pay that kinda money for the da*n white house"!!!

The wife kicked me under the table and the lady kinda chuckled. And, by the way, the best offer was 10%
down(assuming the house appraised at what we borrowed)

Dpeck100 · August 16, 2014 1:36AM

<< Obviously real estate is a local issue

Thats true. The numbers I see bouncing around here blow me away!!

The wife is wanting a new house, so we did some shopping. Checked with 2 banks here locally on what
kinda money we could get. There was a HUGE difference in finance terms just with the 2 local banks. We
just went in looking for how much we could borrow and the terms, not having a house in target.

Long story short, they both pre-approved us for 120,000 and asked if that would be enough? I told the
lady at the first bank "ENOUGH!! Lady I wouldnt pay that kinda money for the da*n white house"!!!

The wife kicked me under the table and the lady kinda chuckled. And, by the way, the best offer was 10%
down(assuming the house appraised at what we borrowed) >>

At $120,000 in many cases borrowers qualify for FHA financing and only need 3.5% down.

I live in Florida and while there are pockets where homes are quite expensive in general it is nothing like California.

ChiefsFan1st · August 16, 2014 1:49AM

<< At $120,000 in many cases borrowers qualify for FHA financing and only need 3.5% down.

I live in Florida and while there are pockets where homes are quite expensive in general it is nothing like California. >>

Yea, the second bank went through FHA. And down payment would be about that. But the hoops they wanted
us to jump through were nuts. Of course, I dont want the house, the wife does. So I wasnt exactly being attentive
and taking notes. I love my little shack in the hills thats paid off AND keeps rain off of my head!!

But, I laid down the law, told her I would not agree to any new home without 20% down. She is kinda like
most women and allergic to saving money, so I should be in the clear on this deal

What would you buy if you sold your one share of Berkshire Hathaway

Comments