Polls
Berkshire Hits the Wall; Is It Still a Buy?
Stock quotes in this article:BRK.B
Last Friday reflected this disconnect between the U.S. market outlook and Berkshire's trading, with the big U.S. indexes close to flat on Friday while Berkshire continued its share price ascendence.
The feeding frenzy in Berkshire shares was given further bait late last Thursday when Berkshire Hathaway announced that it would not issue any additional shares due to the S&P 500 inclusion. It is common for companies to do an "index add" of common shares after they have been added to the S&P 500.
Of course, some market watchers say that the recent surge is simply a reaction to the fact that every index fund in the world benchmarked to the S&P 500 will now have to add Berkshire Hathaway to its portfolio mix. However, since the S&P move was long anticipated -- and there have been several academic studies indicating that stocks added to the S&P 500 get a big bump -- could the market have really completely missed this until after S&P made its announcement?
Is the surge in Berkshire Hathaway shares just the type of irrational exuberance, spurred by crowd psychology, that would irk a patient value investor like Warren Buffett. Or is the rise in Berkshire Hathaway's share price here to stay, maybe set to go still higher?
All of which begs the question: Are you a bull or a bear on Buffett's Berkshire?
Take our poll below, to see what TheStreet has to say.
-- Reported by Eric Rosenbaum in New York.
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
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| 12,393.45 | 1,310.33 | 2,827.34 | 15.81 |
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