Buffetteer

What is the matter with people??? Musk fans mistakenly think he was talking about this company when he said use Signal. They blindly poured money into it. The stock jumped from $0.60 to close at $7.19 on Friday. Even with this news coming out and everyone knowing that this company has nothing to do with what musk said, his fans continue to pour money into it!!! Currently trading @ $32.38...after going as high as $70 earlier today. So to recap, after realizing that they'd made a mistake they continued to buy and took this $0.60 stock to over $70 before dropping back to $32.38. We are living in the Twilight Zone. Some stocks have lost complete attachment to reality. It's just a video game to some people.

I am not thoroughly familiar with SEC Form 13D, but here is an explanation I found online. It deals with disclosure requirements of major shareholders: Amendments to Schedule 13Ds must be filed “promptly” after a material change occurs to the facts submitted in the previously filed schedule. While the determination of what constitutes a “material” change is based on the facts and circumstances of the transaction, the SEC deems acquisitions or dispositions of beneficial ownership equal to 1 percent or more of the class of securities as “material.” In addition, while “promptly” has not been defined by the SEC and depends upon the facts and circumstances of the acquisition or disposition, in the case of a change of beneficial ownership equal to 1 percent or more of the class of securities the SEC has taken the position that “promptly” means “within 1 business day.” For all other instances, “promptly” is generally interpreted by practitioners as “within 10 days.” Am I to understand that if Berkshire reduces its position in Wells Fargo by 1% or more we will know about it the next day, or at very least within 10 days? Would be greatly appreciated if other members with a better understanding of SEC rules are able to clarify this.

Thanks for the info Valueguy, I couldn't find anything online and was wondering what caused the drop.

Anybody worried that BRK lowered their position by almost 13% ? They still own 8.76% of the company, but is this a sign of a slow and steady reduction?

Whoa! I should switch, I'm with WebBroker.

Thanks Liberty. Spoke to my brokerage, and yes I will be receiving the shares. As I haven't seen them added to my account yet I was somewhat concerned, but apparently it takes about two weeks for the transfer to take place.

So if I own 240 shares of LBTYA should I have received 12 shares of LiLAK?

Trading halted yesterday, anybody know why? http://www.aastocks.com/en/stocks/news/aafn-news/NOW.665770/1 (BYD COMPANY (01211.HK) 0.000 (0.000%) 's trading has been halted from 9:00 this morning, pending the release of inside information. )

Thank you kiwing, this is great as I missed the first hour.

Thank you Rainforesthiker. You're absolutely right, that was exactly my intent. I truly wanted people's perspective, good or bad, as I stated in the initial post. And I do appreciate the feedback from members who have provided their opinion (well, most of them ;) ). It's interesting how two people can read the same post and one completely understands the meaning whereas the other just does not get it. Unfortunately those that don't get it, don't get that they don't get it. I agree with the general consensus of this thread that leverage in itself is not necessarily good nor bad. When, how, how much, at what rate, etc. all affect the use of leverage.

+1

I'm sorry, I can't find that thread.

Do we know for sure that that is the metric still being used? in this year's letter Buffett states, "Berkshire's directors will only authorize repurchases at a price they believe is well below intrinsic value." The 1.2 x book may no longer apply.

Whoaaa, take it down a notch little fella, why all the anger? I suggest you re-read my post, very slowly...a couple times, until you truly understand it and not cherry pick and take things out of context. Did you miss the part about asking for feedback from those hurt by leverage? So just take a deep breath and read it again. No need to be so critical just because someone happens to have a different opinion, is there? Now, what do you think Warren had in mind when he said sensible investing?

There were some great points raised in this thread http://www.cornerofberkshireandfairfax.ca/forum/berkshire-hathaway/annual-letter-out/ but I hope we can discuss this important topic in more detail here. Warren Buffet does, for the most part, advise against leverage but I do always have this quote in the back of my mind from one of his letters, "If your actions are sensible, you are certain to get good results, leverage just moves things along faster." So, I thinks one of the most sensible uses of leverage is to buy an index fund or BRK stock. But Buffett advises against that in this year's letter. Would love to get input from other members, especially those who have had several years experience with leverage. I know there is a tendency for people who have been successful with the use of leverage to share their experience, and I would love to hear them, but I would also love to hear from those who have been hurt by leverage. I think both examples would be very useful for all of us on this board interested in this topic. I personally am not opposed to leverage. I think of it this way: If you would borrow money to buy a house (mortgage) why not borrow to purchase an index fund or BRK stock. Both are just as safe as real estate investment and the returns are greater. But I am fairly inexperienced with leverage and would love to hear from others.