Strategies & Market Trends: Buy Berkshire instead of Vanguard S&P (BRKA)  
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Share This Board Moderated By: Patsy Collins -- (Not Moderated) -- Started: 6/14/1997 5:12:00 PM  Revision History

How to play this runaway market, here we are at 7782 and 893 on the S&P 500. We could certainly buy an index fund on the S&P. The best is certainly the Vanguard Index 500 portfolio, with an annual cost of under 50 basis points. But I'd rather invest in a share of Berkshire Hathaway class A. Why, isn't Berhshire very expensive? It certainly is, but although BRKA is currently selling at over 50 P/E and its main holdings, which includes KO, G, AXP, WFC, FNM, and MCD are all way overvalued with PEs from 20 to 58, you have the master, Warren Buffet managing your hard earned $48,700 for you. What more can you ask for, all this with just a $30 commission to Schwab!

Is Buffet worth the extra $$$$ over Sauter's Vanguard 500? I hope so, Buffet's up nearly 30% per year over the last 30. George merely pegs his portfolio to an index, occasionally buying/selling S&P future contracts at day's end in an attempt to outperform the S&P by a bp or two.

Buffet, on the other hand, can use the strong cash flows from his insurance businesses to buy undervalued stocks from time to time. Producing unmeasurable valued-added investment results over the long haul.

If you'd got $50,000 now, buy a share.
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313if you have not book your annual meeting with Warren flight already, it will cosJurgis Bekepuris-04/06/2010 03:56 PM
312Been over a year since I last invested in BRK and today maybe a good time near $Patsy Collins-04/06/2010 03:03 PM
311Yes. You make a good point. We were all duped by trusting a fragile financialappro-03/11/2009 03:03 PM
310The main problem with holding BRK A or B now is liquidity. If an institutional Patsy Collins-03/06/2009 01:45 PM
309Patsy, I agree. No one knows how low this will go. Or for how many years. But appro-03/06/2009 12:56 PM
308BRKA, under 75k, although not down as much as other financials, is not low enougPatsy Collins-03/02/2009 03:17 PM
307Buffett maybe the complete opposite of this Madoff character. I must admit that Patsy Collins-01/12/2009 12:17 PM
306Yes, Patsy, that really is true. He has the right approach to investing and makappro-01/12/2009 05:09 AM
305Forget about having Buffett's wealth. Wouldn't it be nice to just think Patsy Collins201/08/2009 09:50 PM
304Buffett hopes to see the market plunge a couple more times....before he dies. Tappro-01/02/2009 03:24 PM
303These are scary times. Anything is a possibility. Look at how many Madoff managPatsy Collins212/24/2008 03:51 PM
302I don't think we have to worry about Goldman going under. Stranger things hpaulnewmanhero-12/16/2008 11:53 PM
301True, but if Goldman goes under, the 10% dividend is not a legal obligation. Patsy Collins111/17/2008 10:31 AM
300He didn't lose 40% because he bought preferred stock with a 10% dividend. ThMoominoid-11/17/2008 06:47 AM
299Thanks Patsy. paulnewmanhero-11/14/2008 08:08 PM
298Good advice. I agree we all in another learning experience. I trust Warren &amappro-11/14/2008 04:47 PM
297None of us, including Warren have experienced this latest economic crisis. It haPatsy Collins-11/13/2008 03:30 PM
296I am back in as of a few months ago for a 15% haircut. Have been vacillating abappro-11/13/2008 02:39 PM
295I still hold it and while it has outperformed peers this year, I would not add. Patsy Collins-11/13/2008 08:57 AM
294So what do you think of BRKa now? paulnewmanhero-11/12/2008 10:16 PM
293BRK on the list of mega cap financials that have held in 2008. BRK/a (I'm sPatsy Collins109/27/2008 03:43 PM
292Berkshire is coming back strong as always.... paulnewmanhero-09/27/2008 01:05 PM
291I agree. appro-05/16/2008 04:35 PM
290You are welcome. I left the party way too early, but I will be back. appro-05/16/2008 04:24 PM
289That 0.22 beta makes sense in a bear market and BRK/A has maintained a 0.15 to aPatsy Collins105/14/2008 09:01 PM
288As Kass says, Buffett doesn't do as he says. But that isn't neccessarilyMoominoid-05/14/2008 07:05 PM
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