Posts: 4,426
Threads: 232
Joined: Dec 2002
Berkshire announces that they are going to buy the remaining 80% of Burlington Northern Santa Fe. BNI stock goes up 27% to the offer price (100$ a share) and Berkshire stock price goes down ... actually no it doesn't go down at all, it goes up 2%. So what gives? Do investors really believe that "synergies" and savings between these two companies will account for those 27% and 2% hikes in stock price? I guess that's possible, but more likely, I think we live with a market that simply concedes that Buffet is smarter then the collective. I really don't see any other explanations then that. It boggles my mind that value is made out of thin air because one guy makes one decision. The market basically admitted today that its millions of participants are not as good as Buffet in doing valuations.
"Hamilton is really a Colossus to the anti republican party. Without numbers he is an host within himself. They have got themselves into a defile where they might be finished but too much security on the republican part will give time to his talents and indefatigableness to extricate them. We have had only middling performances to oppose to him. In truth when he comes forward there is nobody but yourself who can meet him. His adversaries having begun the attack he has the advantage of answering them and remains unanswered himself. For God's sake take up your pen and give a fundamental reply to Curtius and Camillas" - Thomas Jefferson to James Madison
Posts: 5,686
Threads: 327
Joined: Jul 2002
This doesn't surprise me.
Caveatum & Blhurr D'Vizhun.
![[Image: glarebear_av.gif]](http://thepurge.net/turnip/glarebear_av.gif)
![[Image: sterb037.gif]](http://www.getsmileyface.com/sm/violent/sterb037.gif)
Posts: 8,501
Threads: 624
Joined: May 2003
Emotion and greed = stock market.
Yes yes there is some value, but for the most part once a stock leaves its "Emotion and GReed" phase and becomes a value stock, its a stock you probably don't want to own, if your looking for growth.
Maul, the Bashing Shamie
"If you want to change the world, be that change."
--Gandhi
![[Image: maull2.gif]](http://bengtel.com/maull2.gif)
Posts: 11,078
Threads: 339
Joined: Mar 2005
The Stock market is Vegas without cute waitresses or comped drinks.
Buffett probably only did this because he has B&O and Reading Railroad and wants to get all 4.
Posts: 5,093
Threads: 321
Joined: Dec 2004
Read Liar's Poker. Intelligence and economic theory have no place in the trading market.
Posts: 3,034
Threads: 220
Joined: Jul 2003
Berkshire B shares are also splitting 50-1, which makes things interesting. A lot of people were put off by the high price of even BRK-B, but now I can see a lot more everyday investors jumping in. Could be a nice pop. I might grab a few myself at $65-ish.
Ex SWG, L2, CoH, Wow, and War
Currently PvPing in the stock market
Posts: 4,426
Threads: 232
Joined: Dec 2002
Grieve Wrote:Berkshire B shares are also splitting 50-1, which makes things interesting. A lot of people were put off by the high price of even BRK-B, but now I can see a lot more everyday investors jumping in. Could be a nice pop. I might grab a few myself at $65-ish.
Now that I think about it, maybe its that 50-1 split that buoyed the BRK shares since it will probably open open access to more investors. It would make sense since the news came out simultaneous with the deal offer.
Breand Wrote:Read Liar's Poker. Intelligence and economic theory have no place in the trading market.
Does it make that case for the short term or the long term?
Jakensama Wrote:Buffett probably only did this because he has B&O and Reading Railroad and wants to get all 4.
lol
"Hamilton is really a Colossus to the anti republican party. Without numbers he is an host within himself. They have got themselves into a defile where they might be finished but too much security on the republican part will give time to his talents and indefatigableness to extricate them. We have had only middling performances to oppose to him. In truth when he comes forward there is nobody but yourself who can meet him. His adversaries having begun the attack he has the advantage of answering them and remains unanswered himself. For God's sake take up your pen and give a fundamental reply to Curtius and Camillas" - Thomas Jefferson to James Madison
Posts: 4,426
Threads: 232
Joined: Dec 2002
http://www.efinancialnews.com/homepage/c...restricted
uh oh, I guess the elite segment of the market disagrees:
Quote:Short sellers have focused their attention on Warren Buffett's Berkshire Hathaway, with the number of the firm's B shares on loan increasing fivefold, as hedge funds look to profit from concerns over the industrial conglomerate's multi-billion dollar takeover of a US railway operator.
"Hamilton is really a Colossus to the anti republican party. Without numbers he is an host within himself. They have got themselves into a defile where they might be finished but too much security on the republican part will give time to his talents and indefatigableness to extricate them. We have had only middling performances to oppose to him. In truth when he comes forward there is nobody but yourself who can meet him. His adversaries having begun the attack he has the advantage of answering them and remains unanswered himself. For God's sake take up your pen and give a fundamental reply to Curtius and Camillas" - Thomas Jefferson to James Madison
