Berkshire Hathaway (BRK.B) 50% Discount

Sun, Jun 8, 2008

Market Noise

No, Berkshire Hathaway is not currently priced with a 50% discount. Instead, I followed this article from Stock Pursuit about a trader who did buy Berkshire B (BRK.B) shares at about 50% discount to its market price.

Basically it goes like this.
A person that put in a sell order at market price was given $2,147 per share instead of the quoted $4,448. Well, if this person lost about 50% off his investment, then someone must have bought at a 50% discount. How? A trader put in a limit buy order at $2,147 and since the sell orders were being filled and there wasn’t much activity going on, the order was filled.

I can imagine the pain and shock of that poor guy.

I’m also one of the people that tend to buy and sell with market orders but I’ll have to protect myself with limit orders from now on as I find myself investing in thinly traded companies.

You can read the article here.

More on this topic (What's this?)
David Sokol Replaces Buffett
Read more on Berkshire Hathaway at Wikinvest

You may also be interested in:

  1. Explaining Discount Rates
  2. Choosing Growth Rates and Discount Rates

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This post was written by:

Jae Jun - who has written 399 posts on Old School Value.

Value investor following the Old School Graham, Buffett and Fisher school of investing. Follow me on Twitter to receive real time thoughts and updates not available here.

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