Berkshire Hathaway often performs like a top-performing ETF in the guise of an individual stock, with historical results that generally surpass those of the S&P 500. I’m open to hearing different perspectives on this viewpoint, what do you all think?
Buffett is 94. Anyone who has been following Berkshire for a while is aware of the succession plan and knows that the next leader is already handling the investing.
I won’t try to dissuade you, as I think it’s a smart move. My only questions are whether this is a long-term strategy that is, you won’t need the money for at least a year or three and if you plan to keep investing in these two funds.
Picking stocks can be thrilling, but I have lost a fair amount of money over the years and have come to terms with my own limitations. Nowadays, I stick with VOO and appreciate the reassurance that almost everyone else is in the same situation if things go south.
I concur with you and fully understand how you feel. Going 100% VOO is perfectly OK, which is why Buffett himself suggests it. Although technically BRK is a stock, its holdings make it more of an ETF, and its historical performance accounting for both risk and return significantly outperforms the S&P.
There are definitely worse choices, but keep in mind that BRK is already included in VOO, and BRK holds many other companies that are also in VOO, including a significant stake in AAPL. There is a lot of overlap between the two.
Personally, I have 30% VOO and 30% BRK.B. 30% VTI and roughly 10% in different people. For investments outside of retirement accounts.
Approximately 75–80% of VTI is in VOO.
There is 100% VOO in VTI.
Most investments made by BRK overlap both.
With those three holdings, your diversification is quite low. Very underweight international, small, and mid-cap. And I just want to make sure you know that you may want to be.