turbodog
Flashaholic
Any idea why MKL has gotten so hammered compared to BRK since c-19 hit? One is a smaller version of the other. Usually they track in lockstep with one another.
MKL versus BRK
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turbodog
Flashaholic
MKL is Markel, an insurance company. BRK is Berkshire Hathaway, a much larger insurance company.
They are run in basically the same method, and have had almost the same change in their stock price for decades. However, after c-19 hit, MKL has gone down much more than BRK. I find this very odd and am looking for an explanation.
They are run in basically the same method, and have had almost the same change in their stock price for decades. However, after c-19 hit, MKL has gone down much more than BRK. I find this very odd and am looking for an explanation.
Specifically, I don't know, current conditions aren't really great for insurance or banks(though J.P. Morgan is tempting at these levels). Large cap growth stocks, wacky option plays, bio/pharmaceutical, and space stocks are the rage. A little scary but value continues to lag and I wouldn't touch banks/ins until there's a uptick in rates and inflation. After all that, I haven't really touched my holdings since before all this madness.
And I'm a big fan of CNBCs Jim Cramer whose COVID-19 index is doing very well.
And I'm a big fan of CNBCs Jim Cramer whose COVID-19 index is doing very well.
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turbodog
Flashaholic
I just know MKL is 33% off their pre c-19 peak and BKL only down 21%.
"Only" down 20-30%! Something wrong with that picture, unless you think the economy is going to open and change quickly in the next six months. Campbell's soup sounds safer..
turbodog
Flashaholic
Different holdings... diversified... some up, some down
I don't plan on selling MKL, but would like to know why the divergence between it and BRK. That said, those 2 are my worse holdings. Even starbucks is not down that far.
I don't plan on selling MKL, but would like to know why the divergence between it and BRK. That said, those 2 are my worse holdings. Even starbucks is not down that far.
The simplest answer might be Apple.
turbodog
Flashaholic
Already have some. I question their long term viability. They were practically bankrupt before ipod. If MS did not port Office to mac I doubt they would have survived to make the ipod. As suddenly as they came into fame, they could decline.
Yeah, Buffet's investment is now paying off and doesn't your dr. recommend an iwatch to monitor vitals? And have you seen their subscription numbers? And they too shall pass, but I'll probably be gone too.
turbodog
Flashaholic
Grossly misunderstood your comment. Thought you recommended I buy apple. Today I saw BRK's apple ownership stake, and Yes, I agree. Think it's due to their stake. That's a 2 way street... if BRK buys into your company that's a rather large vote of confidence.
Like a large mutual fund, BH is now too large, and probably too old, to be a nimble player who can purchase chunks of smaller companies whose performance will affect BH' s bottom line. So now they're stuck with older, established, known name brands which haven't done anything since COVID- except Apple. Large stakes in Wells Fargo (though I think he just got out of that at its low?)and bank America aren't doing anything, especially since the fed is now committed to near 0% rates for the long term! Value investing, which has always appealed to me, has been a failure and looks to continue going nowhere. I haven't changed my balanced portfolio and the growth and tech companies are pulling all the weight: just look at how few companies are hitting 52 week highs. It's a very narrow market! So, Buffet's prescient stake in Apple has made up for all the other worthless ones(Dairy Queen). Again, Jim Cramer on CNBC has a COVID index which is appealing and logical. What do you think of Palantir? Its ipo might be interesting.
turbodog
Flashaholic
I agree... but I also temper my views, goals, expectations with the timeline of NOT selling for the next 10-40 years on _some_ holdings.
I've got a rapid growth stock that I bought on a whim. At this point my biggest question is how to (eventually) unwind the purchase and flip it into something else, with less growth, that I can buy and forget for 1-4 decades.
MKL and BRK provide above average returns and very long term stability. I own them and just a few others. Never heard of Palantir. Other than some autozone I bought during the 2008 meltdown and kept for a couple of years I've never sold a stock.
I've got a rapid growth stock that I bought on a whim. At this point my biggest question is how to (eventually) unwind the purchase and flip it into something else, with less growth, that I can buy and forget for 1-4 decades.
MKL and BRK provide above average returns and very long term stability. I own them and just a few others. Never heard of Palantir. Other than some autozone I bought during the 2008 meltdown and kept for a couple of years I've never sold a stock.
I buy and hold as well and hope they all go to my kids. Palantir is a software company that primarily works with government and military. And they do not work with China and just moved away from Silicon Valley. The Ceo is interesting.
turbodog
Flashaholic
Did some reading on them. They keep taking in rounds of funding and have not disclosed turning a profit, ever. I think AI-based companies will succeed, but can't say that it will be them. Most of the money to be made is in the pre-ipo shares which I'm not invited to participate in.
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Pretty thorough discussion here. I'm not a fan of Big Brother but I also feel there's no way to avoid its prevalence, especially with America's need to compete with China.
https://www.nytimes.com/2020/08/26/technology/palantir-ipo.html?referringSource=articleShare
https://www.nytimes.com/2020/08/26/technology/palantir-ipo.html?referringSource=articleShare
