> The reason why BH has not been outperforming SP500 in the last 10 years is that cash is cheap for everyone (this is the longest boom in history) Once the water level drops again and we see who swims naked, BH will outperform again.
At the start of the tech companies’ boom, Buffett famously said he does not invest in tech companies because he does not invest in what he does not understand. Then he bought a ton of Apple a few years later, and that is basically the only thing keeping Berkshire stock in the game.
The last amazing deal I can recall that Berkshire made was Goldman Sachs during the 2008 financial crisis. Other than that, I think he might have been better off buying VOO. The company itself is 40% Apple right now, for which Berkshire paid full retail price when it was bought.
I think the parameters of the game that used to allow Buffett to achieve exceptional results have long changed, as evidenced by the numbers.
Berkshire stores value when times are good, they makes exceptional deals when there is crash and they can buy good stuff cheap. They always have cash and the don't have to sell assets to buy stuff.
Unless you think that there will be no financial crisis or severe recession again, Berkshire will probably shine again.
At the start of the tech companies’ boom, Buffett famously said he does not invest in tech companies because he does not invest in what he does not understand. Then he bought a ton of Apple a few years later, and that is basically the only thing keeping Berkshire stock in the game.
The last amazing deal I can recall that Berkshire made was Goldman Sachs during the 2008 financial crisis. Other than that, I think he might have been better off buying VOO. The company itself is 40% Apple right now, for which Berkshire paid full retail price when it was bought.
I think the parameters of the game that used to allow Buffett to achieve exceptional results have long changed, as evidenced by the numbers.