Home
Previous
Next
June, 2004: 9
Disclaimer - IMPORTANT - Read this first!
| Investor's Journal is a diary focused strictly on investments and personal finance issues, primarily from a contrarian and retiree point of view. Follow along with an average guy's failures and successes as he learns, by trial and error, the fine art of value investing. |
6/9/04-I continue to find few compelling equity bargains. One possible exception is Berkshire Hathaway (BRK/A) (BRK/B) which is down from about $3100 per class B share earlier this year to around $2900 recently, though without any obvious significant reduction in its intrinsic value. It seems likely that the true worth of this extremely well managed company, with an average increase in book value of greater than 22% annually over several decades, will continue to improve substantially better than the record of the S&P 500 Index for the foreseeable future, even if Chairman Warren Buffett should die. The corporation's overall culture would surely remain intact.
Our total nest egg is now up 1.5% for the year, after excess 2004 expenses (over income) of $22,500, to date. Were the amount we'd had to withdraw for extra expenses included in our total return, the nest egg is up 5.1% since the end of 2003. The S&P 500 Index, meanwhile, is up 1.7% in 2004.
The Essential Value Portfolio (EVP) has gained 11.9% since its 8/18/03 inception, though several of its holdings were purchased well after that date and over 23% of the EVP is now in cash.
Our assets presently include no non-mortgage debt. I am still using any strength in the markets as a time for selling off stocks and raising cash-equivalents. Equities remain, however, at about 75% of out total financial assets.
Otherwise, currently no changes are being made either to the EVP or the nest egg as a whole.
My wife and I are about to leave on a trip, due to return at the end of June or beginning of July.
Disclaimer and Disclosure Statement
Neither I nor Investor's Journal will be responsible for losses by anyone who obtained ideas from this site.
This diary is intended for personal interest and general information only. You are advised to do your own research (as well as to consult highly compensated professionals) before spending money on anything.
I know of no reason anyone should take my financial musings seriously. At best I am a dedicated amateur providing a bit of investment-related insight and entertainment, at worst an amusing diversion.
My wife, Fran, and I may at times own shares of some of the assets mentioned here. But neither of us receive any benefit from reference to them, unless you count the mutual misery when we get it wrong, or the opportunity to gloat when we get it right.