Mohammed goes to mountain, or manager goes to Buffet

An amusing story on has it that a young lady fund manager named Goldenberg wrote a letter to Warren Buffet about her stocks.  The letter so impressed him that he asked her to lunch — in Omaha.  She duly went and among other things showed him VRX.  Ever curious we looked at the chart. Two years.

2010-02-26-vrxSo is this worth an investment?  It doesn’t drive us wild with desire.  But it is in an uptrend.  That’s the positive. Negative wise the trend is a year long and the stock is up over 100%.  There is always a way to manage issues like this:  wait until the high is taken out and put in a 5th of the line you intend to commit — with the other 4 tranches as the trend continues.

Stop 3% under the nearest wave low.

On the other hand if you want to buy Buffet that’s probably not a bad trade.  BRK.B.

2010-02-26-brk.bBroke out of a rectangle and is doing what Buffet stocks do.

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