$BRK: Not Abel to Break Out… Yet!
The price of $BRK stock has climbed towards what I like to call the Abel Resistance Zone. It lies somewhere between $500 and $540, with the stock closing the week at $515. For the past 18 months, we haven’t been Abel (haha, little joke) to break above this zone, despite the broader market climbing quite a bit higher.
Investors are still unsure whether they can trust the new CEO in the same way they trusted the legendary Warren Buffett. But time is ticking, and at some point, they might realize that Abel is also a smart guy who lives and loves Berkshire in the same way Buffett and Munger did. It’s a bit like Steve Jobs and Tim Cook. Who would have thought back then what Cook could grow Apple into?
My monthly DCA continues, and I believe that at some point over the next 1–2 years, the headwinds of scepticism surrounding Berkshire will fade. Once that happens, we might finally break above the Abel Resistance Zone and climb towards new ATHs.