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Stocks B / Berkshire Hathaway


Subject:  Re: Stanley Drunkenmiller Shorting IBM Date:  11/23/2013  3:01 PM
Author:  physdude Number:  206234 of 247087

Valuewalk implies that he is also long Amazon which, to me at least, is an
even more surprising bet. I am not sure if AMZN is going to be profitable
enough to justify the current price even if it manages to displace IBM
completely in the cloud sector. A long AMZN / short IBM strategy needs
everything to work out just right to work in the long term. In the short
term, momentum undeniably benefits AMZN so it might work out okay but you
couldn't get me to undertake such a trade without a gun to my head.

(Heavily long IBM ATM/OTM 2015 and 2016 LEAPS (6% of my portfolio and
controlling stock amounting to 35% of my portfolio's value) - definitely
not the safest trade I have ever made but I think the risk/reward outlook
is quite good for it at least at the 2016 time frame.)
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