Bershire Hathaway A stock - a simple analysis part 2

I have just arrive back home from a trip to San Francisco, USA. Over the two weeks, the BRK.A stock has moved up together with the Dow Jones and S&P index. Before i leave for the USA on the 29th Oct 2006, this is the report from a local news paper: "Wall Street's blue-chip share index yesterday powered to its best finish this year and neared its all-time high , as a stronger report on consumer confidence eased fears that US economic growth is stalling" As per my last prediction that the BRK.A stock will go down on the 25th September, it has actually went up all the way... notice the upward trend of the Dow and S&P index after 25th September till to now. This is another lesson to learn. No amount of technical analysis methods will able to adequately and accurately predict the Market direction and movement. Mr Market is sentimental and will have a mood swing any time of the day if he so desired.

Therefore, buying stock for the long term by value investing method is still the best strategy to date. It is important to calculate the intrinic value of the growth stock, factoring into some margin of safety, is still the best option to go for investing.















This is the report from Coattailinvestor on Buffet watch:

"Earlier this month, Warren Buffett took action to make sure his company, Berkshire Hathaway, remains a top model company for years to come. In a recent memo to “The All-Stars”, his top managers, the Oracle of Omaha warned against the temptation of unethical behaviour. The memo comes in the wake of the ongoing backdating scandal that has over 100 companies being investigated for questionable behavior.
Mr. Buffett was realistic in his memo stating that unethical behaviour in a company with over 200,000 employees is “inevitable”, but that the effects can be minimized with early detection. He went on to tell his All-Stars that, “Berkshire’s reputation is in your hands”, and unethical behaviour could not be justified because “everybody else is doing it”.
We here at Coattail Investor commend Mr. Buffett for continuing to set the standard for CEOs everywhere. "

Well this is a example of good management.. part of the criteria for picking the right stock based on value investing technique. In my opinion, BRK.A stock is a good stock to invest if you have the money to do so.