No. of Recommendations: 19
Mhmm, one sentence might have been a bit too short. As I tried to say with that one sentence I think it comes down to trust. More in detail:
- You think they should ..... pay a dividend.
- You think they should ..... do BIG buybacks at current price
- You think they should ..... [this or that]
Whom do you trust more? Their judgement or yours? For me the answer is clear, which is why though reduced I still have around 50% of net assets in Berkshire.
Did they (Warren) make mistakes? Sure he did. Especially his famous "Errors of Omission". Not using the GFC. Not participating in the Mag 7. Missing out on A LOT, no doubt.
But that fits perfectly my far weaker mentality than theirs. I am far more willing to give my money to somebody who is mentally strong enough to ALWAYS give Rule #1 (Donīt lose money) absolute priority. Such a mindset unavoidably leads to errors of omission --- which is perfectly fine with me, as for myself capital preservation has priority and all else is icing on the cake. And I wouldn't know anybody Iīd trust more with that priority.
So it comes down not simply to trust (that was too simple, sorry). It's about your priorities, your investment goals, your preferred risk-reward balance, one has to look into all of that to decide whether Berkshire is the right investment or one should rather look elsewhere.
