Vincent Poy's avatar
$1.9m follower assets
Many people respect Warren Buffett as the stock god. My question is, since Buffett is consistent with his gains, would it be a bad idea investing in $BRK.A buy buying fractional shares as I know people avoided it in the old days when one can only buy whole shares which meant you had to have the monetary resources or would it still be better to buy something like SPY?
Carter Kilmann's avatar

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Just at quick glance, they’ve actually performed pretty similarly over the last five years.

There was a broader variance at their peaks prior to the crash, $BRKA was up 114%, while the S&P was up 99%.

It certainly wouldn’t be the worst company to take a large position in.

Vincent Poy's avatar
@carterkilmann - Maybe I should ask another question. I always thought Buffett had 30% average returns per year, isn't all his returns coming from BRK?
Eric Messenger's avatar
@almighty188 his early days he compounded at 29% when he was managing an investment fund, then I’ve read he compounded at an annual rate of 23.8% overall. Not sure if that’s just at Berkshire or includes both careers.
Vincent Poy's avatar
@wall_street_deebo - Yes, I know he made money when he ran a investment fund but I mean even the 23.8% is way above what it shows above for BRKA.
Eric Messenger's avatar
@almighty188 The above chart is only for 5 years; he’s had Berkshire for decades. Munger said he paid $16 for his first shares, now trading at $400K, that’s quite the CAGR.
Yegor's avatar
The problem that some investors might have with investing into $BRK.B right now is soon WEB won’t be at the stirring wheel and so some say future brkb won’t look like last and it might be safer to play via SPY

I can’t say that’s true or false, time will tell and we all should make our own decisions and stick with them
Conor Mac's avatar
You can alternatively buy B class shares, that go for ~265 USD.
Vincent Poy's avatar
@investmenttalk - I think I mentioned the A without thinking about the B because I remember in the old days when people still called in to place trades, there used to be the joke that the client would say "I want to buy one share of" broker hangs up phone "BRKA" before they can even say the name. I didn't realize that B shares had the same performance since I would have thought A had some advantages for being priced higher.
Irish Born Investor's avatar
Just buy the B?
Joey Hirendernath's avatar
I currently hold $BRK.B however I am aware that this is based on the belief that Buffet’s protégé will be able to hold the same track record.

Do you currently hold any $VOO ?

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