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Berkshire stock could fall 99% and he would still have outperformed the S&P. Insane.
by missedthecue 10mo ago
Berkshire stock could fall 99% and he would still have outperformed the S&P. Insane.
- verteu 10mo agoInteresting that his performance was essentially identical to the S&P over the past 30 years (Sortino 0.72 vs 0.69): https://testfol.io/?s=jJ4P0GrZxLi https://testfol.io/?s=jJ4P0GrZxLi I wonder how much is due to the market becoming more efficient, vs Berkshire's size / market impact?
- tim333 10mo agoProbably a bit of both. Berkshire's size means he was limited to the largest companies which are pretty well analysed. During that period he did some different things which some of his personal money like buying stock in Dae Han Flour Mills, a Korean flour miller that was like 2 times earnings in 2003 but was probably too small a position to make sense for Berkshire. (https://www.netnethunter.com/warren-buffett-cheap-stock-picks https://www.netnethunter.com/warren-buffett-cheap-stock-pick...)
- thinkingtoilet 10mo agoThat is wild.
- dsQTbR7Y5mRHnZv 10mo agoHow do you figure? The portfolio looks to have performed roughly the same as the S&P.
- missedthecue 10mo agoBRK total return from inception to 2025: about 5,502,284% (55,000x gain) S&P500 total return over the same period: about 39,054% (390x gain) $1 in BRK would be $55k today. $1 in S&P500 would be $390 today. Therefore, following the hypothetical 99% drop, 1% of Berkshire return would be $550, still well above the S&P500's $390.