If This Is A Crime I'm Gonna Get Mine

posted by: Jacques Le Naif

for:

2010 · 02 · 10

We have got a big capitalist system and we have to have a big capital market

The Great Bookie Buffett has said:

“We have got a big capitalist system and we have to have a big capital market”.

Buffett is noble; he has a strong desire to be a big stack and to put some flesh on our bones (charity).

Enter The Gates Foundation & BNSF.

Buffett has estimated that index investors will have to buy about 6 percent of Berkshire’s shares … Berkshire put out a news release saying it wouldn’t be issuing any additional shares due to S&P’s decision to include the company in the The S&P 500 Index.

Now here’s the rub.

I worry when index investors, a large proportion of the Market Place, are all acting in a predictable way. It opens up the possibility of Bucketing stock objects IN or OUT of the Index for profit!

For the record CNBC has produced a table of Berkshire V The S&P 500 Index. Of which it is about to be a component.

Note: Berkshire has never paid a dividend and dividends are not included in The S&P 500.

Disclosure: Jacques le Naif owns Berkshire Hathaway (NYSE:BRKB) shares.


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