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BRK.B is closer to a mutual fund than a "single stock"

• TheAdamAndChe 9y ago
  It's also has a single Board of Directors, meaning there is still a single point of failure. It's not like putting all of your money on Tesla, but it's still riskier than a mutual fund.
  • gbacon 9y ago
    As a BRK.B owner, the elephant in the room is the advanced age of Warren Buffett. No matter how much he and Munger talk soothingly about continuity and succession plans, the unknown is how the company’s stock will fare after Mr. Buffett heads for the great Dairy Queen in the sky.
    • wahern 9y ago
      I think upon his passing there'd be plenty of time to exit without missing a beat. The value of BRK stock is the net present value of Berkshire's existing holdings, plus perhaps a small and diminishing premium for the convenience of holding stock at the moment of Buffett's future sale and acquisition choices. Because Berkshire is fairly hands-off in terms of managing their holdings, and because its investments have fairly low volatility, in the short-term the stock price should hold steady upon Buffett's exit. Thus, if owning BRK made sense 10 years ago, then it makes sense to own it until the very last day that Buffett[1] controls the company, and even afterward to the extent the pipeline is filled with his choices. But maybe I'm misunderstanding something about market dynamics related to how end games play out. [1] Presuming that Buffett remains Buffet, in control of his faculties and in particular his prescience.