Initiate/Increase Position in Berkshire Hathaway (BRK.B) as a Defensive, Diversified Cash Alternative

about 1 month ago

Combined hosts (Shawn O'Malley & Daniel Monka)

"I believe adding Berkshire, similar to what Norbert Liu is doing or has been doing, is pretty much a no-brainer. Starting at 10% seems reasonable, and if the market dips further, increasing the allocation to 15% could be a good move. This not only provides exposure to a well-diversified conglomerate with a robust cash position but also acts as a hedge that functions almost like a flexible form of cash."

The hosts outline a trade call for Berkshire Hathaway (BRK.B), suggesting that investors allocate approximately 10% of their portfolio to BRK.B as a defensive position. They highlight Berkshire's diversified earnings, its role as a cash equivalent (given its nearly $350 billion in cash holdings), and its potential to serve as a stable, lower-volatility placeholder in a portfolio. They also mention the possibility of increasing the allocation to 15% if market conditions worsen, thereby offering a tactical hedging opportunity alongside its long-term value characteristics.

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