In a recent publication of Reuters the following was said:
“Exclusive - Berkshire is best-regarded U.S. company (By Scott Malone Mon Apr 5, 2010)
BOSTON (Reuters) - Everybody loves Warren Buffett. Berkshire Hathaway Inc (BRKa.N) -- the investment vehicle run by Buffett, the so-called sage of Omaha -- topped a list of the best-regarded U.S. companies, although the public has a dim view of corporate America overall after a brutal economic downturn.”
We highly respect and acknowledge what Mr. Buffet built and achieved with Berkshire Hathaway Inc. He is a man of his word, a leader and stock market promoter for the public. His words and actions help to bring confidence and positive outlook to the American people and the worldwide public. We want to take the opportunity to thank him for that.
Looking at the development of the Berkshire: BRK/A-Fund, it has a huge price: approx $120,000/share. By today there are no options available for the fund. Berkshire sure knows about their weakness and plans to make changes in this respect. But they are not there yet.
NeverLossTradig concentrates on shares and funds that offer options, have a minimal bid and ask spread (best a penny), dollar strike prices and also penny spreads on options. We sure hope Berkshire will establish their restructured fund in this manner and we are happy to trade it, but not today. Our pick comparable the BRK/A would cost about $120 a share. With a recommended minimum of 100 shares, to be able to protect and leverage with options, we talk about a personal investments in increments of $1,200 instead of $120,000.
Making constant income and being able to protect assets is one of our investment programs we teach and practice with our students and members. Our goal is to make a monthly income of about 2-5% above the average market progression, being able to protect against market downturns and do this repetitively on a month by month basis with weekly reviews.
There is not too much effort you need to bring to control your financial destiny. Let us compare the development with Berkshire and the S&P 500 over time and decide ourselves what we want to do with our financial future.
Since 2008 the S&P 500 and Berkshire basically go hand in hand. At times the BRK.A advances, or the S&P 500 and then they catch up again.
For people who like diversification, we teach how to trade exchange traded funds of the S&P 500 and if we only produce a 2% monthly income above and beyond the market progression we are way ahead in our returns compared to a Fund like Berkshire.
The big advantage of the small investor is specialized knowledge in some sectors and speed of decision: we are in and out of a security in split seconds. This applied an educated market investor will advance the best fund managers by speed and control.
Imagine we had invested $150,000 two years ago into one share of the A-Fund of Berkshire, the share would be worth $121,000 today. Applying the NeverLossTrading concept with the same investment, preventing the down turn and making a constant income of 2% a month our account would show: $241,265.6. In other classes we teach how to greatly benefit from downturns with monthly income way above the 2% mark.
The advantage of the small investor is speed. We do not have to comply to SEC regulations. When we spot what is going on in the market it takes us seconds to react. While a huge fund holder has to slowly sell in and out of positions.
Take your future into your own hands, learn how to make money as a self investor. We are here for you: contact@NeverLossTrading.com.
Saturday, July 3, 2010
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