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No. of Recommendations: 3
Just to be clear, you're advising that we extrapolate that result?
You see the bad price performance ending now as evidence that the Berkshire the business has done worse than S&P500 considered as a business, and will continue to do worse?

Do you therefore recommend the S&P over Berkshire as the higher performing investment choice starting here for the next 1,3,5,10,15 years?


1. We know that S&P500 is very hard to beat over the long term.
2. We also know that S&P500 has beaten BRK over the last several years.
3. We also know that WEB is old.
4. We also know that BRK is not well organized like Apple or Microsoft or Google.
BRK is a collection of whatever business WEB wanted.

Why listen to me when you can hear it from WEB:

Becky Quick: (03:08:37)
I got a number of variations on this next question, some more polite than others. This one’s right about down-the-middle. But this is from [Mark Blakely 00:03:08:44] who writes in from Tulsa, Oklahoma, and he says “Like many, I’m a proud Berkshire Hathaway shareholder. However, in comparing the performance of Berkshire with the S&P 500 over the last 5, 10 or 15 years, I’ve been disappointed in Berkshire’s under-performance. Even year to date, Berkshire is trailing the S&P 500 by 8%. To what would you attribute Berkshire’s under-performance? While I can’t imagine ever selling my Berkshire stock at some point, money is money.”

Warren Buffett: (03:09:11)
No, I agree with everything that, I forgot his name, but just said. I mean the truth is that I recommend the S&P500 to people. And I happen to believe that Berkshire is about as solid as any single investment can be, in terms of earning reasonable returns over time. But, I would not want to bet my life on whether we beat the S&P500 over the next 10 years. I obviously think there’s a reasonable chance of doing it, and we’ve had periods, I don’t know how many out of the 50 55 years we’ve been doing it or, I don’t know how many we’ve beaten or not. I mentioned earlier that 1954 was my best year, but I was working with absolutely with peanuts, unfortunately. And, I think if you work with small sums of money, I think there is some chance of a few people that really do bring something to the game.
But I think it’s very hard for anybody to identify them. And I think that when they work with large funds, it gets tougher. And it’s certainly gotten tougher for us, with larger funds. And I would make no promise to anybody that we will do better than the S&P500. But what I will promise them is that I’ve got 99% of my money in Berkshire. And most members of my family, may not be quite that extreme, but they’re close to it. And I do care about what happens to Berkshire over the long period about as much as anybody could care about it. But caring doesn’t guarantee results. It does guarantee attention.
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