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COMMENT
Tech sector. There have been some powerful changes in the market, especially in the NASDAQ 100. It reached the same valuation peak from October to early January that it did in the year 2000, and has now stepped back. This is the first leg down of that index. Some stocks like PTON have been massacred, as they don't have much earnings support. These stocks are still not cheap, and have miles to go before they're finished. SHOP and some of the FANGs are also on their way lower. Modestly decent fundamentals have held up so far. If all this reminds you of the height of the dot-com boom, it should.
Unknown
COMMENT
Portfolio positioning. As in 2000, value stocks and gold have held their ground. Economy didn't implode then, and it doesn't appear to be imploding now. He has no overall sell signal for the general market, and he's in no panic to become defensive unless you still hold the NASDAQ stocks. If you do, switch to any areas of value. End of pandemic should open the NA economies to a great degree and encourage the overall market to stay the course, at least for now. TSX is far, far better value than the S&P or NASDAQ, and he'd focus his portfolio there.
Unknown
COMMENT
Differences from year 2000? If you can find differences, good on you. Only the names have been changed to protect the guilty. Same excessive valuations have begun to correct. Switch from those high valuation, no sales, no earnings stocks and into value. Value held quite nicely for all of the 2000s. We can see a crash again on the NASDAQ stocks. The lion's share of those are still excessively valued. For the NASDAQ to just get back to FMV (not even cheap), it would have to fall almost 40%.
Unknown
DON'T BUY
As brilliant as management of BRK has been, they've not been without their mistakes. Getting into China early may well be one of them. We don't know what the new rules will be. Jack Ma has not been seen, not sure what this tells you. Be very cautious. When the stock broke the strong support level of $200, it signalled the end of the growth of BABA.
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COMMENT
Investing in China. Not only would he avoid BABA, but China in general. This view is seconded by David Rosenberg. BRK may favour China right now, but they've not been without mistakes, and some have been lulus. Beware of the politics of that market.
Unknown
DON'T BUY
Very profitable. ROE is around 30%, and has been high for a long time. Company has never used its potential to expand the business faster. Great value, but buying back stock at a high valuation. Go elsewhere.
computer software / processing
DON'T BUY
Got expensive, 20x book value. FMV is 51% lower than current price. Eventually, FMV is a very powerful attractor to the stock price. Not good value. Company won't disappear, but overpriced. Sees it going as low as $268.
computer software / processing