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Author: knighttof3 Big red star, 1000 posts 10+ Year Anniversary! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 213673  
Subject: Re: What investing prowess? Date: 3/23/2013 3:32 PM
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Huh, I thought my post would make a bigger splash. The world's best investor has been bested by a low-cost ETF for 7 out of 9 years (maybe even the remaining 2 (2010 and 2012) if you count dividends, which I did not.)

The assumptions are, you put $1M every year into the two (VDC and BRK/A). You get to spend the approx $25K-30K dividend from VDC while BRK/A gives you nothing.

My wife was deciding what to do with her IRA which she had (amazingly) kept in cash since 2008. After we looked at all options, including gold, international equities, Berkshire, etc; she decided to put ALL of it in VDC. Knowing how many people here keep a large percentage of their wealth in BRK, I wanted to demonstrate to her why BRK was a better choice. But I cannot.

Looking back, what HAS WEB done over the last 9 years? Bought WFC in 30s and IBM in 170s. Small ($5B) sweetheart deals earning 10% with warrants to be exercised. Buying Lubrizol, BNSF, HNZ etc at about 20x P/E. Concentrated on the US while the name brand companies in VDC are far more diversified in revenue sources.
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