BERKSHIRE HATHAWAY LEADS THE PATHWAY!

Warren Buffet has been sitting on cash, over $140 billion, the past few months during one of the biggest bull runs of my life time. It was no secret that the markets were reaching all time highs, creating more and more overvalued assets. One of Warren Buffet's favorite quotes is be fearful when others are greedy and greedy when others are fearful, and everyone was greedy last year, now the tables have turned and most are fearful. Warren Buffet has always been a cheap guy, starting his investing career using the cigar bud strategy, in which he would buy cheap undervalued assets that had one nice run left to produce profits; he then graduated to value investing, finding good fundamentally sound businesses that were priced undervalued. This takes discipline, research, but most importantly patience. Warren used these strategies to turn a failing insurance business (Berkshire Hathaway) into one of America's most profitable businesses. Berkshire is not just an insurance business but also has big ownerships in other sectors, this is very similar to Alleghany, an insurance company that runs many other businesses, has be admired by Warren Buffet for years (mainly for its conservative stance on running it's business.) Warren Buffet finally found an opportunity to spend some of that hordered cash, $11.6 billion of the $140 billion, and purchased the company at a bargain price. Of course it was a good deal in which he bought Alleghany at a lower P/B and lower P/E than past insurer deals. Berkshire Hathaway is up over 18% for the year easily beating the market, while the NASDAQ is down around 15%. This old head is killing shit!