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Warren Buffett’s Berkshire Hathaway Stock Underperforms the Most Since 2009
- coder1001 7y agoIsn't investing with Warren a long term play? One year lower is a big deal?
- nodesocket 7y agoWe will see BRK performance compared to the S&P with the potential upcoming meltdown of the market due to Coronavirus global slowdown. Futures for Monday looking god-awful. The next 9 months in the market are going to be very interesting (fed decisions, election, lasting effects of virus).
- deleted 7y ago[deleted]
- voiper1 7y agoPaywalled for me.
- nottorp 7y agoWhat are the actual numbers? TFA is paywalled ofc.
- fierarul 7y agoIt's the first page in the Buffet letter: https://www.berkshirehathaway.com/letters/2019ltr.pdf https://www.berkshirehathaway.com/letters/2019ltr.pdf
- fxtentacle 7y ago"underperforms" here means that they only made 11% profit, or something along the lines of 30 billion USD per 3 months. So this isn't any real-world trouble, nor did anyone actually lose money. It's simply investors feeling frowny because they were hoping for an even higher payout. Poor them :p
- nottorp 7y agoSo it underperforms compared to ... having your own money printing operation?
- polote 7y agoThe performance of a stock is usually compared to one index, (S&P 500 in that case) The reasoning is that doing 4% when the market is in average doing 10% it is more or less the same as losing 6%
- globular-toast 7y agoNot really. It would only be losing money if it was less than inflation.
- basch 7y agoopportunity lost. Microsoft, Apple, Amazon, Google, Facebook make up something like 20% of the S&P 500, and most of its gains. Apple and Microsoft are 10% alone. So you could make the same argument for someone who chose to invest in the whole index, vs just the top 5. Its not necessarily a good argument. It will be interesting if they are still the top 5 tech companies in 10 years. It feels like they have a bit more of a foothold than the Dell, IBM, HP of years past. Maybe cloud vendor lock in isnt worse than the platform lock ins they sold.
- markdown 7y agoIf other people making more than you means you're losing, then you're losing from the day you were born to the day you die.
- polote 7y agoI can't read the article but, maybe this could be largely explained as BK almost doesn't invest in tech
- wiredfool 7y agoIt’s Berkshire Hathaway’s worst year relative to the SP 500 in the last 10, not that it’s underperformed for 10 years. (Using the metric of stock price, which is basically popularity and over the short term doesn’t necessarily correspond to any actual rationality. Ymmv, the market can stay irrational longer than you can stay solvent, etc)
- richardw 7y agoIt often underperforms during periods of exuberance. Everyone bleats until there’s a crash, leaving Berkshire as one of the few still above water.
- Onanymous 7y agoAnd so does the Bridgewater to the best of my knowledge. This could mean those guys are hedging too much against the next bubble burst and expect it to come rather sooner then later.
- tree3 7y agoUnsurprising. Berkshire is holding a lot of cash, waiting to invest it at a better time.
- RickJWagner 7y agoBuffett is notoriously conservative. The current bull market has gone very long. When the pendulum switches back the other way, people will be writing about the genius of Warren Buffett once again. Buffett's first rule of money: "Don't lose money."