The second chance I wrote about lately (i.e. buying Facebook on the dip) was an easy choice. Facebook is an excellent business with amazing growth, long runway and wide moat. My favorite tech/business writer Ben Thompson just elaborated on that in his weekly article.
But with more money put into Facebook and recent drop of BHC, which triggered my buy orders that increased my BHC position by ~12% I extended myself a bit too much. I decide to reduce my BRK position by ~25%, given that the upside there is much more limited compared to BHC and I might be able to swing back into BRK after both earning releases. It is not something that I count on, but in terms of expected value, I see BHC as a more compelling proposition at these price, and below $22 I was inclined to increase size of it to be above Berkshire. This was a though call, but consistent with my value investing principles and contrary to Mr Market's price swings, as shown below:
But with more money put into Facebook and recent drop of BHC, which triggered my buy orders that increased my BHC position by ~12% I extended myself a bit too much. I decide to reduce my BRK position by ~25%, given that the upside there is much more limited compared to BHC and I might be able to swing back into BRK after both earning releases. It is not something that I count on, but in terms of expected value, I see BHC as a more compelling proposition at these price, and below $22 I was inclined to increase size of it to be above Berkshire. This was a though call, but consistent with my value investing principles and contrary to Mr Market's price swings, as shown below:
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