r/valueinvesting
Why Should Anyone Buy $BRK If Buffett Doesn’t Even Recommend It
Author questions why Buffett recommends S&P 500 over BRK for his wife, implying doubts about BRK's future outperformance.
to his wife.
It’s been posted before (in comments section - not thread topic) that Warren recommends his wife/widow (upon getting inheritance after her passing) put 90% of her wealth into the S&P 500 and 10% into short-term government bonds (to weather downturns). There‘s an elephant in the room begging the question why not keep it in Berkshire or, at least, some of it in $BRK?
Is that a tacit admission that he doesn’t think Berkshire will beat the S&P 500 going forward? It’s interesting given how he seems to think the market is overvalued and presumably Berkshire can buy up good assets with all that cash it has during any corrections/bear markets. Yet, he still thinks she shouldn‘t hold any Berkshire and go all-in into VOO.
Thoughts?
Sit on cash yourself v Berkshire Hathaway.
Have you fact checked what your saying?
Berkshire annual rate of return since 2016 is 13.2%.
During previous market crisis Berkshire has outperformed virtually every other asset.
There is every reason to be loading the boat on Berkshire Hathaway at this very moment.
Cool story bro
I bought the Liberation day dip and the Iran war dip and made money off of both
Berkshire didn't
Your story is underwhelming
lol his wife and others at that level of wealth don’t “Voo and chill”. At some point it becomes more about preservation than growth. They have generational wealth.
That’s why many hedge funds seek beta neutral strategies.
I have restarted buying again. The reason is that I consider the market overhyped and I do not have time nor I am super smart to pick good stock/etf. Since brk is sitting on a load of cash and I think they are smarter than me, it is a good buy for me.
So ppl can click it. Click bait.
Warren Buffet:
"Take a piece of paper and write down, why you would buy this stock. If you can't write it down, you shouldn't buy this stock"
I can’t say why I’d buy value investing favorite PayPal. Other than it is cheap P/E
It's like investing in government bonds without the upside of government bonds. A crazy sentence I thought would never apply to any stock worth taking seriously
Well It depends , SPY/VOO has some BRK ?
Chat GPT calls Berkshire the “lower volatility stability core” of my portfolio.
Because not even Warren knows what asset vehicle will outperform the rest over the next 5-10 years.
Diversify stock holdings.
Invest in other investments (like gold and real estate), too.
Buying BRK also can swing from under to overvalued to itself and to the sp500 which can also swing from over to under… his remark makes sense for non investor and for endowment funds that have funding structures.. if his wife did get all his BRK stocks the wolfs will be at the door trying to tell her how to manage it buffet has help many in succession planning and aware of many pitfalls so he is right sp500 and leave it
He’s been vocal about S&P 500 beating hedge funds consistently net of fees. Perhaps the wife isn’t market savvy and he believes going forward there’s no longer the value propositions that made Berkshire famous. Have heard him repeated claim it’s hard to find value these days and I agree although once this bubble pops that likely changes.
Oddest part is I’m assuming he’s leaving her a small fortune and wouldn’t it be safer to just place in short term treasuries and just enjoy what life remains or typical billionaire thinking about just letting assets get handed down and never spent. Great for the kids and their kid’s kids but you only live once. Go splurge and just teach those kids how to fend for themselves
Well, that 10% treasuries rule is kinda the “insurance” against big crashes. I’m sure she has WAY MORE than she’ll ever need too.