Horacio Marquez Says Buffett’s Berkshire Is a Bargain
Aug 25th, 2008 | By Horacio Marquez | Category: Featured, Financial News, Stock Market InvestingAgainst this current market backdrop, cash is clearly king. Berkshire’s ready access to investment capital, and the shortage of investing liquidity are ready made for Buffett to exercise his well-known stock-picking prowess – creating still greater profit opportunities for Berkshire Hathaway down the road.
Our conclusion: The short-term weakness in the U.S. economy – which is reflected in the weakness of Berkshire’s stock price – makes Berkshire a bargain itself right now. And with Buffett at the helm, Berkshire will continue to be one of the most-profitable investments you’ll be able to find anywhere in the world.
But this is not a short-term play – or a stock for trading. It’s a long-term core holding – indeed, one of the best you’ll find. Therefore, I would buy Berkshire Hathaway in incremental stages on any weakness between now and the end of the year, as market conditions improve and tax-loss-selling on U.S. stocks abates.
Buy shares of Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B), making your purchases in incremental stages between now and the end of this year.
P.S. Horacio Marquez was working as a vice president of the Merrill Lynch Emerging Markets Fixed Income Group in 1994 when he correctly predicted that both Argentina and Mexico were headed for currency crises – cementing his reputation as an expert on both the emerging markets and on the nuances of global finance.
Marquez brings that expertise to his newly-created Shadow Stock Trader service. To find out how to subscribe, please click here.
This post is taken from Buy, Sell or Hold, a brand-new Money Morning feature that so far has covered Cisco Systems Inc. (Nasdaq: CS), ABB Ltd (NYSE ADR: ABB), Cummins Inc. (NYSE: CMI), Chevron Corp. (NYSE: CVX), Valero Energy Corp. (NYSE: VLO), and General Electric Co. (NYSE: GE). Over the next several Mondays, Money Morning, will be reviewing Chesapeake Energy Corp. (CHK).
Source: Buy, Sell or Hold: Berkshire Hathaway Inc.
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