Berkshire Hathaway Inc (BRK.B): WSJ: On Buffett Lagging the S&P Lately:...

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Re: gfp927z post# 912

Saturday, 03/03/2018 9:15:09 AM

Saturday, March 03, 2018 9:15:09 AM

WSJ: On Buffett Lagging the S&P Lately:

"Last weekend, Berkshire Hathaway Inc. Chairman Warren Buffett spent roughly a fifth of his latest annual letter talking about what he calls “The Bet.”

What he didn’t talk about is even more interesting.

In the bet, made at the end of 2007, Mr. Buffett correctly wagered that several bundles of hedge funds selected by investor Ted Seides wouldn’t be able to outperform the S&P 500 over the ensuing decade. What Mr. Buffett didn’t mention directly in his letter is that Berkshire Hathaway didn’t outperform the S&P 500 over that stretch, either.

Over the 10 years ended last year, Berkshire Hathaway returned an average of 7.7% annually. The S&P 500 returned 8.5%, including dividends.

For decades, Mr. Buffett has been warning that size is the enemy of excellence for any investor and that Berkshire’s future performance was bound to decline.

Could he finally be turning out to be right? Is Berkshire, at a total market value of $500 billion, getting too big to beat the market?

much more...

https://www.yahoo.com/finance/news/wager-appears-just-too-big-050100774.html

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