Blogger Joshua M. Brown writes: I took a boatload of
criticism for my position in Berkshire Hathaway last fall. We looked at it as a stealth housing play and
a backdoor investment in the beaten-down banks we simply couldn't bring
ourselves to buy directly. And people
really hated it…. But now the stock (we
own the Berkshire B Shares) is making a new 52-week high above 85. It is threatening it's post-crisis highs at
the 86-87 level and I dare say I believe it can crash through. The reason why the stock has gotten this
burst of momentum is very simple - Berkshire is the single greatest play on the
housing market resurgence extant. It's
got the safety of a well-diversified business and it hits the housing market
from virtually every angle - remodeling, re-mortgaging, recovering prices etc.
We got yet another fantastic housing data point today as
housing starts increased at the fastest pace in nearly four years. This comes on the heels of yesterday's
soaring Builder Confidence number and a foreclosure stat showing an inventory
drop of almost 20%. We're not talking
about housing nirvana or a return to 2006, but this is solid progress. And it's more than enough to push Berkshire
to a 52-week high. Here's why…..
Read all about it at http://www.thereformedbroker.com/2012/07/18/why-berkshire-is-killing-it-right-now/
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