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No. of Recommendations: 17
So owning a growing tapestry of wonderful and productive
assets is better than owning a lump of shiny metal??

Who knew : O


Well, for the last year and a half, anyway!
The future is less certain. Maybe the real market price of gold will now
rise faster than anything else, forever, to infinity and beyond.
Hah!

Speaking of rallies, I have mentioned a few times this past year that
there has been no Berkshire rally recently as such, in the sense that
it's merely a broad market rally in which Berkshire is participating.
The price of BRK rose no more (nor less) than the average S&P company since May 2012.
Thus it has been reasonable to conclude that the rise in the price of
Berkshire's stock was NOT due to any increase in the appreciation of the
value of the firm or its relative price/value compared to other securities.
(from that one might have made the conjecture that Berkshire might
be expected to participate in the next market slump as well...why not?)

...until recently.
Berkshire has been outperforming other US large caps lately.
This is a graph of the ratio of BRK to (in effect) that of the average S&P 500 firm, equally weighted.
http://stockcharts.com/h-sc/ui?s=BRK/B:RSP&p=D&yr=1&...
Note the relative upswing (outperformance of BRK) since mid February.
Unlike the prior 9 months, this appears to be an appreciation of the
charms of Berkshire rather than just a broad market rally.
The market fell yesterday and BRK fell less. The market is rising today and BRK is rising more.

So, the rally has begun. Long may she reign.
You folks who are still accumulating shares can just go hang for all I care!
There will always be another bear market coming, don't worry.

Jim
Lotsa BRK, no GLD
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