BRK vs S&P - June 2023 Update

In the last 15 years, you did not have to read any financial statement or board or news.
You would have done better than BRK and Warren Buffett.

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<< You would have done better than BRK and Warren Buffett >> I assume this involves dividends are re-invested, is that correct? If yes, when they re-invest, any tax assumptions made?

Over 10 years also.

Surprisingly, BRK.b did a little better over 5 years:

Since the COVID low there’s not much in it:

Be careful of people beating the drums of S&P overvaluation and predicting doom and gloom.
Many people lost decades of compounding with buying into this narrative.

It is best to ignore the noise and dollar cost average in S&P.

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Do you provide this sage wisdom, over and over, on every stock’s discussion board?

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I think this board can use some old-style fight. Bring it on… :slight_smile:

One argument for Berkshire:
S&P500 earnings yield is about 4%.
Berkshire earnings power is about $45bn, on a $740 market cap, that’s an earnings yield of 6%.

S&P is adaptable, resilient, has a long track record of outperformance and has no size or succession issues. You don’t get this with BRK.

WEB has positioned BRK as a slow grower. He has been very conservative missing out on most of the easy pitches, even as recently in 2023 with GOOG(up 38%), AMZN (up 55%), TSLA (up 129%), META (up 145%) this year.

Instead he loaded on OXY (-7%) and CVX (-13%).

Get rich slowly, sleep well, enjoy life.

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For starters, Berkshire is both adaptable and extremely resilient.

Also, advising to “get rich slowly” in the same breath as highlighting extremely short-term stock performances doesn’t seem to jive.

I do everything in your final sentence in a different way from you. Glad you have found a way suitable to your own temperament.

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15 years is not extremely short term performance. See the start of my post. S&P is consistently outperforming BRK.

Don’t buy into the impending doom and gloom argument.

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dividends20, I think you’ve made your point.

You said the following just before talking about getting rich slowly:

“He has been very conservative missing out on most of the easy pitches, even as recently in 2023 with GOOG(up 38%), AMZN (up 55%), TSLA (up 129%), META (up 145%) this year.”

Why bring up 6-month returns at all if you’re all about the slow?

As for doom and gloom, I think you may be confusing reasonable risk aversion with doom and gloom. At current prices, Berkshire appears to me to have a better risk/reward than the S&P. I said nothing about impending doom and gloom.

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You said the following just before talking about getting rich slowly: "… in 2023… this year.”

You don’t need to explain to him (or the board) that he wrote illogical BS. He knows. That’s why he, who is unable to admit such, is using his dishonest old trick to ignore and deflect by changing track when caught :joy:

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Coming back to this. It’s true that the board guru did no one any favors - so far- with this sort of commentary:
The Auntie Times: The Archive. Collective Wisdom from Big Daddy

2013 - November 18
Executive summary:

  • The broad US stock market is breathtakingly overvalued.
  • The risk of a big sudden drop (15-30%) is higher than it has been in decades.
  • Start selling stuff soon, or buying insurance.

Since then Berkshire is +195%, SPY is +210%.

It is an indication, if one were needed, of Jim’s good character that he leaves this stuff up.

“Prediction is very difficult, especially if it’s about the future!”

Buffett has said repeatedly that an S&P500 index fund is all most people need.

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