I bought some Berkshire Hathaway for some accounts I watch for friends and family. They like me to keep their accounts fully invested. Here's what I sold and why:
Full Sale: Dow Jones Diamonds Trust (DIA – $132.53)
This is the Exchange Traded Fund that holds the 30 stocks of the Dow Jones Industrial Average. With so much cash on hand and a good portfolio, Berkshire Hathaway is both as good as the Dow Jones but offers less exposure and cheaper fees.
Full Sale: Blackrock Floating Rate Income Strategies (FRB – $18.84)
Floating Rate Income funds are all trading near NAV. I don't see the advantage anymore.
Partial Sale: Deagio (DEO – $83.85)
Diageo is nearing full value. Its valuation means it is no longer a value stock.
Partial Sale: Tsakos Energy Navigation (TNP – $57.15)
This shipping company is so darn cheap, but I had to take a little profits from the $35 where I bought it.
Bought: Berkshire Hathaway B- shares (BRK.B – $3630)
Large capitalization stock is undervalued. Lots of cash. Underpaid management. I don't think I've ever referred to management of any other company as underpaid. I normally prefer the "A" shares, as they have 30 times the claim and 200 times the voting rights.
Disclosure: I own DEO, TNP and BRK.A for my personal account. I do not professionally manage money. The accounts to which I refer are not managed under any professional contract, I simply have limited trading authority and help my friends with suggestions. I am not compensated as an asset manager by anyone. I am not a professional asset manager nor do I seek to be one. Please do not contact me asking if I will manage your assets.