David Rolfe On When to Trim Berkshire Hathaway Position

Mar 02, 2015

Why would you trim your stake in Berkshire Hathaway (BRK.A, Financial) (BRK.B)?

Valuation, says David Rolfe (Trades, Portfolio) of Wedgewood Partners. Rolfe expects to own Berkshire for many years to come, but when the price to book value of Berkshire gets closer to 2, that position size should be reduced.

Berkshire Hathaway is an incredibly safe company, but valuation matters. Buy it when it is expensive and your investment returns will suffer because of it.

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