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Personal Investments • Re: What is Berkshire Hathaway's best "competitive advantage" vs. the market?

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I don't think anyone these days is arguing for BRK as a replacement for a total market index, but I personally have been at least considering adding it specifically for diversification. BRK.B is pretty weakly correlated with other equities, e.g. PV gives a correlation of 0.72 with VTI and 0.6 with VXUS (for comparison, VTI's correlation with VXUS is 0.86). This isn't a surprise, as BRK shouldn't "behave" like a total market index.

Still undecided, and it'd be something like 5-10% (and probably after seeing how it does once Buffet isn't around anymore). But as far as "alternative asset classes" go, it may be one of the cheapest/least risky/most accessible options, especially since my tax-sheltered space is all accounted for.

I wouldn't be surprised at a price drop upon Buffet's disappearance.

Statistics: Posted by breakfastinbed — Thu Oct 31, 2024 11:31 pm



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