What the experts say

Berkshire is a buy

You know things are bad when investors unload shares in Berkshire Hathaway, said Andrew Bary in Barron’s. Class A shares in the $140 billion portfolio company recently were down more than 30 percent. Investors, it seems, have been concerned about the health of the company’s equity portfolio, not to mention its $37 billion stake in equity index put options, which were purchased between 2005 and 2007. “The derivatives bet, while ultimately likely to be profitable, looks like a rare mistake by Berkshire CEO Warren Buffett.” But look closer. The options don’t require Berkshire to post collateral when the market falls, and they aren’t exercisable until maturity—that’s not until 2019 to 2027. Meanwhile, Berkshire remains “one of the world’s strongest companies, with a rare triple-A credit rating.” All things considered, “now is probably a good time to buy”—assuming you can afford the six-figure share price.

When to ditch niche funds

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Investors should generally take a buy-and-hold approach when it comes to mutual funds, said John Waggoner in USA Today. “Some funds, however, simply aren’t long-term investments.” Sector funds and emerging-market funds, in particular, “were made to be traded.” That’s not to say you should try to time the market. But you should have a game plan for cutting your losses. The easiest strategy is to set a target price. “Write down your purchase price, subtract 10 percent, and sell if the fund hits that level.” In the case of exchange funds, use a stop-loss order, which automatically sells the shares if they fall below your target price. Alternatively, consider selling when a fund’s price falls below its 200-day moving average. In the case of these niche funds, “it’s better to sell early than wait an eternity to get back even.”

Doing good on a budget

Your heart may be bigger than your wallet this holiday season, said Erin Burt in Kiplinger.com. But there are plenty of ways to help the less fortunate. Volunteering is one way to give back. “Almost anyone can write a check, but a gift of your time is priceless.” You can also clean out the old clothes, shoes, linens, and household goods cluttering your closets and shelves, and donate them to a homeless shelter or charitable thrift store. This good deed is not only free—it’s tax deductible. The same goes for old cell phones or computers. Many charitable organizations, such as Collective Good or the National Cristina Foundation, refurbish or recycle electronics. Just be sure to clean out the contact list on your phone and permanently delete your computer files.