I know it’s not the first time people are microanalyzing Buffett’s returns, but the question must be asked when you work in a dynamic, fast paced industry where yesterday’s heroes become zeroes. Going forward, does being invested in Berkshire beat a passive equity index investment?
http://www.bloomberg.com/news/2012-05-03/buffett-trails-s-p-500-for-third-straight-year.html
Berkshire Hathaway Inc. (BRK/A) shareholdersmissed out on better returns from the Standard & Poor’s 500 Index by sticking with Chairman Warren Buffett after each of his last three annual meetings.
Berkshire fell 2.4 percent from the firm’s April 30, 2011, meeting through yesterday, compared with the 2.8 percent advance in the S&P 500. (SPX) This year’s gathering, planned for May 5 in Omaha, Nebraska, concludes three years in which Berkshire climbed about 32 percent, trailing the S&P 500’s gain of around 60 percent.
Buffett beat the market between the 2008 and 2009 meetings as the financial crisis pushed the S&P 500 to a 38 percent drop, compared with a 31 percent decline at Berkshire. The equities rally since then has more than tripled broadcasting and Internet retail stocks and doubled railroad shares. Electricity producers have gained about 25 percent. Berkshire generates power through it MidAmerican Energy Holdings unit.
the stock has no yield, hard to analyze, transition issues…you expect the stock to be hot?
i have learned over the past 6 months that if you’re looking at short term stock returns, by and large you have to look at what the market overall (fund maangers etc) are buying (predictable easy to see growth i.e MCD, Nike, etc and dividend yields)…brk.b isn’t a good stock for the overall market right now despite solid fundamentals…
underlying businesses are great the last time i looked at them. both the reinsurance/auto are top notch, plus they pretty much got the top spots in the industries they’re in…their stock portfolio is also top notch…best of all they got my hero charlie munger…
It might be time for me to get back in COP.
Frank, what’s your opinion on Loews (L), I assume you’ve given it a look.
http://www.zerohedge.com/news/charlie-munger-civilzied-people-dont-buy-gold-only-pre-holocaust-jews-sew-it-their-garments
I like this. It’s definitely true. Although, certainly not poltically correctly worded for the 21st centuries consumption.
But, what does he care? I’m 90 and a billionaire. FUCK YOU!
Becky Quick’s reaction is priceless. She "Quick"ly changes the subject and continues to look sexually aroused by this man’s fortune.
i can’t remember anything about the holding co right now. i did read a few things on the company and understand Tisch is very much a value oriented type of player.
however, CNA Financial is not to me a top notch insurance/holding so that kind of turned me off.
I used to own CNA Surety which they acquired and i currently hold Diamond Offshore( which they’re majority owner)…
the people who write these articles and actually spend time caring about stock prices in this fashion have obviously never owned their own business before and view the stock exchanges in the wrong light.
WB has provided the culture but apparently none of the management oversight…i would stick with BRK over a lazy index if they were the two only choices.
The people who write these articles are clueless.