Harry Gross: Riding high on Berkshire Hathaway stock

Posted: February 07, 2013

D EAR HARRY: My father always thought of you as the greatest invention since aspirin. He bought some Berkshire Hathaway stock all through the '80s at your suggestion. You must know how well it performed. He recently died and left me his 10 Class A shares. I am married and doing quite well financially for a guy who's 58. I'm a senior engineer for a company that treats its people well. I have a solid salary, great pension, and every kind of insurance imaginable. My children are all out of the home (except for a 6-year-old Lab retriever) and doing well. We have zero debt. The problem is that the Berkshire stock is more than half my total assets. My company's treasurer recommended that I diversify by selling all but three shares and moving the money to mutual funds. What's your take?

WHAT HARRY SAYS: Your Berkshire is worth about $1.3 million. It compares favorably with mutual funds in the extent of its diversity. Berkshire owns companies from clothing to diamonds, from railroads to banks, from furniture to food. Warren Buffett has more than 99 percent of his assets in the company. If you feel uncomfortable with your percentages, don't sell more than half your shares in an attempt to diversify. Give that Lab a hug from his cousin Harry.


Email Harry Gross at harrygrossDN@gmail.com or write to him at the Daily News, 801 Market St., Philadelphia 19107.

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