Berkshire Hathaway

[The4Aces]

[ QUOTE ]
This could work.

http://en.wikipedia.org/wiki/Expected_value

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I am really trying to understand the difference between +EV and optimalEV.

If i Understand correctly in the situation you described:

Someone agrees to let you pick an envelope from him. He has 100. All are labeled with dollar amounts from 1-100. Assuming you pick an envelope, it is +EV. Picking the one labeled 100 is optimal EV. Is this really that [censored] hard?

I did not have enough time to read that entire wiki, but just from the basic definition given at the top. Since you are automatically allowed to choose an envelope would the VALUE of the entire experience be $50.50 and wouldn't it only be +EV if you chose a envelope over that amount?

[AvivaSimplex]

What I thought Thremp was getting at was that other investors wouldn't pay $10,000 for a stock that earned $1 per year. If you buy a $10000 stock, and it announces that it earned $1 this year, and its earnings will grow 10% per year over the foreseeable future, that $10000 stock will very quickly become a $20 stock.

Put in Thremp's terms, in the markets, suboptimal EV is actually -EV.

[hlacheen]

Back on subject:

http://www.fool.com/investing/value/...source=mppromo

fool.com did a "Dueling Fools" article about BRK

[Jazzy3113]

i help my dad invest and after about 6 months of research and watching I convinced him to let me get 3 shares of B stock.......as for your question as to why people dont buy them....they are very expensive and buffet is on the way out, but i personally feel that its a great long term stock