Berkshire Hathaway Loads Up On Financial Stocks
- Thread starter ASusilovic
- Start date
I understand your reasoning but you're missing one important point. Buffet only buys into companies he can extrapolate (understand how their business will function) over at least the next 10 - 20 years.
Poeple asked Buffet why - since they were best friends - he doesn't take a stake in Bill Gates' Microsoft. Buffet answered that yes, Gates is one of the smartest people he has ever known... but Buffet has no idea how Microsoft's business model will look like in 20 years.
Same with AAPL. Will it be a music company, TV station? Hardware company? Laptop company? A little of everything? The fact is nobody knows.
So even if there is a great opportunity, the risk of unknown (in Buffet's view) is too great for Buffets taste. Buffet loves companies that do the same thing today that they did 20 years ago: Insurance companies, Oil companies, rail roads, banks. There is a good chance they will do exactly the same thing 20 years from now.
He's not in the business of hopping on board of every great train that goes up 200% every year. His business is avoiding risk and uncertainty and making "safe" bets (again, from his point of view, safety lies in the eye of the beholder).
Yea that does make sense.
BRK.a performnce is in line with the SPY on a five year basis which is somewhat unspactacular conidsering who is at the helm.
BRK.a performnce is in line with the SPY on a five year basis which is somewhat unspactacular conidsering who is at the helm.
For the moment it seems like I am outperforming all these wonderful legendary investors. I don't know why?
I'm also out performing the ol' oracle. Too bad I don't have the billions to do it with.
It seems most relibale option players that I know and respect, have out performed WARREN BUFFET in 2007.
Just look at the chart of BRK.A and ask yourself if you owned this turkey in 2007 what has this stock done for me? The answer is very simple.