While I do think Berkshire has been a historically great investment, you need to THINK. Ok...so it's up about 25% in six months. How much is it up in one year? Two years? Five years?
When the stock market is going well any idiot can throw a dart at a newspaper and pick a stock that can be rolled for profit.
Also, you don't sound like you're familiar with the "free ride" rules. You CANNOT buy and sell and buy without each transaction clearing (which takes three days). It's federal law and your broker is required to cut you off if you don't comply with trading rules. You can get around that by having a margin account but that means you are BORROWING (and paying interest on) the 200k and GOOD LUCK if the stock goes down.
Lol...I love these questions from puppies like you. I used to be a greedy puppy too. The dot-com bubble was great. I bought so many great companies and made a ton of money! I put $1700 in this little company called Siebel Systems and in six months it was worth over $43k. .....and then the bubble burst. I was too stupid to sell it when the P/E ratio was just CRAZY. I could have just sold HALF of it. But I was greedy and optimistic not having 20 years of investing experience. I watched that sucker go all the way down. I sold it for about $5500 a year after I bought it (for $1700) and considered that a huge failure. Lol...
Hon, there are years where your portfolio will get cut in half. There are years it will triple. You can roll stocks all you want but at the end of the day you cannot count on 25% returns every six months. Yes, stocks roll, but sometimes they roll at levels BELOW where you bought it.
investing that much money in one particular stock can be risky. thats why most with financial acumen use diversification in any model. enron and several others are a prime example. think you would do better with the first half of your suggestion over the long haul. the market will be headed bearish soon. your buying at the peak, only one way to go.... D O W N
https://www.google.com/webhp?sourceid=ch...
< I ask because in the past 6 months, BRK-A has gone from 165K per share to 206K. >
More like $185k to $205k which is a 11% increase.
The DOW has increased from 16247 to 17157 or 5.6%
Tesla has increased from 233.98 to 261.38 or 11.7%
Apple has increased from 75.25 to 101.58 or 35%
You're confusing the absolute size of the change in stock price with the % return.
"Investing" is a long term proposition. Trying to catch lightning in a bottle, is "gambling".
When it comes to frequent trading, buying or selling based on gut feelings, options, selling short, tips from your barber are "terrible" strategies for most investors. But, if you try it, you will probably lose everything you put into play.
Good Luck.
(p.s. buy SPY or DIA and hold until you retire. You will be glad you did (if the American economy keeps on chugging along)
Say you have 400K saved up. You invest a portion of it in an index fund, a Roth IRA account and a 401(K), among other things.
Say you have around $210K leftover. Would it be wise to invest that left over money in the stock market and buy one share of Berkshire Hathaway' s - A stock (worth around 206K)?
I ask because in the past 6 months, BRK-A has gone from 165K per share to 206K. So, wouldnt it be a clever idea to buy a single stock and hold on to it for a few months (2-3) until it goes up by around another 20K? I mean, BRK-A fluctuates by around 8K each day, while 99% of other stocks fluctuate by a few pennies to a dollar. And considering how unlikely it is for Buffet's stock to not climb again within the next few months, wouldnt it be a risk worth taking? I would go a step further and repeat the process over and over again; buying and selling BRK-A's share until it keeps increasing by a few ten-thousand dollars.
