Buffett Could Not Beat SP500

That should put a muzzle on the non-trading compounding hobbyists that spew the "at that rate you should have trillions" poop when speaking with successful traders.
 
Like I said. There is nothing ‘sitting there’ no more. Trading is about unfolding stories. Instead of static edges.
 
Yeah but.....
Never forget, who cares about beating the market, this guy and Munger have done their home runs in days gone by, the squirrel has a big tidy sum sitting in the nest.
They may well now underperform the market but were the market to continue to rise, a 1% increase in their portfolio is equivelent to a squillion dollars.
I'm sure Buffett, Munger and the early investors in BRK are happy, they have compound returns and virtually a sure bet this will continue.
Any late comer investors in BRK are prolly better off looking elsewhere, the party is over.
 
ironchef said:
https://markets.businessinsider.com...away-cant-beat-stock-market-2019-5-1028178282
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I made a similar study myself and posted it here in 2009 already, including an excel with my results: Is Buffett getting margin calls?

PitchBlack said:
Although i do not make as much money as Buffett does, and i probably reach half the intelligence of the average ETer, i will try to make a posting that makes sense.

I tried to analyze the result but not on a yearly basis. Buffett invests for the long term, so results should be analyze accordingly. I took 5 and 10 year blocks to calculate the average compounded rate for a block to see how things went block by block instead of year by year.

I took the figures from Berkshire as they where published by themselves and putted them in block A. Then i made 10 year periods in block B and calculated the compounded rate for each 10 year period. In block C i did the same but for 5 year periods.

From 1999 on things went wrong:
in the 10 year block the compounded rate went from 28.96% to 6.44%, so down 77.76%.
in the 5 year block the compounded rate went from 33.70% to 5.97%, and 6.91% so down roughly 80%.

In 5 and 10 year blocks you filter out the noise and get a much better view on the results because Buffett is a LT investor.

The fact that for 10 years now things go wrong, proofs that there are at least doubts that Berkshire will stay at a compounded rate of 20.30%. He will have to improve his performance to over 400% of the average performance of the last 10 years.
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