Subject: Re: Diversifying away from Berkshire
'Partly to make life a little more interesting and partly to diversify a bit, I would like to start building a position in one other equity (or maybe two). I would like for it to be Berkshire-esque. From reading this board and its predecessor, the names I keep coming back to are Brookfield (BN and BAM) and Markel. Would these be as good as any for what I want to do?'

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sherwoodsri, for me, the philosophy of BRK is as important as its component parts, which of course change over time. It is hard to find companies run with the same combination of skill, discipline, ethics, transparency, and long-term orientation as BRK. Consistent profitability and smart allocation of capital the way BRK does it is pretty rare. And BRK itself is already quite diversified.

Diversity is basically just a method for reducing risk. So think about the risk(s) you are trying to mitigate or avoid. Is it WEB's age? New management? The size of BRK? The composition of the equity portfolio? Too much cash/energy/tech/real estate or not enough? You want faster growth? Are you planning to use the money or leave it to your kids? All of these should affect your decision and what is a good alternative.

If you like the insurance business, take a look at Arch Capital ACGL. It isn't a diversified conglomerate, but it is very disciplined and Buffet/Jain-like in its approach. I am long ACGL and have been for awhile, but I don't have any other connection to the company. They are currently near their 52-week high, so maybe not the best time to buy, but with rate increases they should do well the next few years - just like BRK. Same sector - different management. I also just bought some DIS which is struggling now but IMHO has a bright future. That's a different sector from BRK and I have a different expectation of how it will perform, when and why.

These companies are not BRK, but I don't need them to be and I don't want them to be, because I own the original. I own different stocks for different reasons, but they all share some basic characteristics that I have established, and I know what I expect from each one. That way I can decide when to buy more or (sometimes) when to get out.

abromber