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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Said ✧  😊 😞
Number: of 22353 
Subject: OT: ´The Economist´on hedging...
Date: 02/08/26 11:12 AM
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...at a time which might resemble the .com hype, followed by it´s crash, and how to prepare for it:

https://archive.ph/nLDYK

A) This
Some of the most effective hedging strategies the Goldman analysts found ... combinations of stocks and non-bond diversifiers. In fact, the best diversifiers were mostly filtered baskets of stocks, such as the S&P 500 “low volatility” subindex, which includes the 100 least volatile stocks in the main index. A 50/50 split between this and the S&P 500 would, from 1996 to 2002, have generated nearly twice the annualised excess returns (over cash) of the S&P 500 index alone.
I think wouldn´t apply to Berkshire, with it´s wild swings over the last 2 years.

B) This
So would a similar split with the S&P 500 “dividend aristocrats” index, which includes only companies that have increased their dividends every year for the past 25.
definitely not - though some here wish it would be the case.

C) At least here
Diversifying into “quality” stocks (with high returns on equity, stable earnings and low net debt) would have brought similar returns.
we can have some hope to survive :)
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Members reply directly to Said here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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