Hedge fund manager Doug Kass has reversed course and is now bullish on Berkshire Hathaway stock (BRK.B, Financial).
Kass said that the recent resignation of David Sokol is "not a tempest in a teapot." Subsequently, Kass picked up shares at $83 last night. Kass believes that there are several qualified candidates to replace Buffett.
Previously, Kass had been bearish on Berkshire. Kass even came up with 11 reasons to short Berkshire stock.
However, his bullish thesis is based on the fact that there has been:
1. a substantial improvement in the value of Berkshire's investment portfolio.
2. a reversal in some of the losses from Buffett's foray into shorting puts on the major world indices.
Over the years, Kass has had several correct market calls on both the long and short side of the market, cementing his reputation as a market timer.
For example, in March 2009, Kass said that the stock market had made a generational low. However, Kass' most recent market calls have been less prescient. Kass was bearish around September 2010 and missed most of the market advance over the last six months.
Kass said that the recent resignation of David Sokol is "not a tempest in a teapot." Subsequently, Kass picked up shares at $83 last night. Kass believes that there are several qualified candidates to replace Buffett.
Previously, Kass had been bearish on Berkshire. Kass even came up with 11 reasons to short Berkshire stock.
However, his bullish thesis is based on the fact that there has been:
1. a substantial improvement in the value of Berkshire's investment portfolio.
2. a reversal in some of the losses from Buffett's foray into shorting puts on the major world indices.
Over the years, Kass has had several correct market calls on both the long and short side of the market, cementing his reputation as a market timer.
For example, in March 2009, Kass said that the stock market had made a generational low. However, Kass' most recent market calls have been less prescient. Kass was bearish around September 2010 and missed most of the market advance over the last six months.
