Dollar cost average. Sleep well. Enjoy life.
Stay away from long posts from well intentioned smart people that have lots of accurate believable facts. The problem often lies in omissions of data and or small number of hidden inaccuracies.
2 Likes
Wow, that’s ridiculous. Berkshire not even close to the S&P after 15 long years. Embarrassing.
1 Like
While an S&P500 low-cost index fund is most appropriate (as Buffett has mentioned any number of times), these results are not adjusted for the lack of full compounding in the S&P500 funds due to taxes due each year on dividend distributions. The Berkshire shares have no dividend distribution at all and thus fully compound “forever”. It depends on what type of gains you prefer, and when you want them taxed.
(and the S&P500 has outpaced Berkshire over the period anyway.)
3 Likes
Been said many times: start point and end point can make a huge difference.
Illustration:
Oct 2008 - Sept 2023: SPY thrashes Berkshire
Sept 2008 - Sept 2023 (1 month added): Berkshire slightly ahead
Contribute $1000/month: no real difference between SPY and Berkshire
2 Likes
It looks much worse compared to Nasdaq.
“Worlds greatest investor” underperforms the S&P and Nasdaq.
Maybe I misunderstand your point. Because it would be deceitful to suggest that the stock price movements of the conglomerate for which Buffett is the CEO is equivalent to his investing track record.
2 Likes
Yes In last 15 years. with the exception of Apple his investments have underperformed,
He bought duds like Airlines, Banks, KHC, PCC, Oxy etc. WEB panicked and sold during covid when market tanked 40%. BRK has underperformed S&P and Nasdaq.
Going forward, BRK’s degree of difficulty is much higher due to its size. BRK investors have to assess this record objectively.
Here is Nasdaq
1 Like
How do you measure his track record of choosing companies to invest in?
I haven’t tried. But I can tell you how I wouldn’t measure it: with Berkshire’s stock price.
1 Like
If you don’t think stock price is reflection of its value over the long term, what’s the point in investing in BRK ?
1 Like