“ We don’t know, what we don’t know, “ because Buffett doesn’t want to disclose this information. Therefore, those who have owned brkb for decades, know, what he doesn’t want to admit. Buffett was right all along, it’s very hard to beat the low cost index over time, very hard.
Berkshire is not an money managing firm or investment management firm. Berkshire investments has to be viewed in the context of its insurance business. Insurance firms collect premiums and then pays out at later date. There is a time lag and during that time they need safe investments. Most firms invest in bonds. Berkshire chose to invest in equities and Buffett’s ability to pick safe stocks or buy operating businesses whose cash flow can be used to meet insurance liabilities.
I expect in future, free cash will be used
- Invest in existing business
- Keep sufficient cash buffer viz-a-viz insurance business
- buyback berkshire stock/ dividend
- make equity investments/ buy operating businesses
They are not going to invest in SPY. That is merely a benchmark. What an individual may do is very different from the company. If berkshire has to invest in SPY as well they can return the cash to investors.
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That remains to be seen. They learned from WEB and Munger, arguably the best in the business. And more importantly, WEB believes in them. Those are pretty good indicators that perhaps they can be trusted. We shall see.
Nothing against them but if Buffett was not able to beat the index in last 15 years, they have 0 chance.
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Can someone find and share the latest gates foundation 10b5 filing , on brkb sales plans? Thank you.