Berkshire Hathaway Inc (BRK.B)

[Duma]

Leveraged ETFs, such as SSO, can be dangerous for longterm investing:

Yes that is so true, but it is obvious that you don't have a clue WHEN leveraged etfs are dangerous. Do you know WHEN leveraged etfs are beneficial to longterm investing?

On Mar 9th I added to my TQQQ position so that I was invested at 101.3%. That means that only 33.8% of my funds were invested in TQQQ but yet I still had over a 101.3% market exposure. As of last night my investment has grown from the 101.3% number to 110.6%. I have done nothing but just watch the price of TQQQ go up. Here's a clue, because of the leverage, TQQQ will outpace QQQ if the market is going up.

So one would obviously expect the reverse to happen if the market was going down. Just like you, I am not a buy and hold person. I choose just as you do when to add to my portfolio and when to make changes to it. Holding leveraged etfs in a full blown recession like 2000 or 2008 would not be good, but that is only for the uninformed and uneducated.

So you can see from the table below that if either SPY or SSO was invested at an effective rate of 160% of assets, the yields are much better than BRK. Of course for the last 5 years we have had 3 good years, one great year, and one bust. Add a recession in and the picture will look very different.

I am not saying that BRK is a bad investment; I am just saying that is not the full picture. However, BRK for sure is not having a very good year so far. SPY at 7.1% and BRK 2.9%. QQQ is having a stellar year at 14.1%.