No. of Recommendations: 10
weatherman started it. Not DTB.
MAGA or not, doesn't seem worth investing when simpler and cheaper alternatives exist. Berkshire being one.
It's just another example of a double standard, though. No push-back for smurffdog saying that what Ackman is proposing is 'MAGA grift', but if I suggest that not everyone who voted against Harris is crazy or involved in MAGA-grift, then I'm told to take it to the political asylum, not here.
As for Berkshire, it is arguably over-valued and towards the end of its run of generating huge excess returns over and above the general markets. It is simple, and reliable, but not really cheap. I think someone like Ackman has demonstrated the ability to take advantage of big disruptions (GFC, Covid, etc.) in a way that Buffett has not. Nothing against Buffett, his job #1 is to make sure that rich people stay rich. If that fits the bill, I agree there is no point in taking on extra risk and paying 1.5% fees.
For people that are somewhere between 'stay rich' (Buffett) and 'make big contrarian bets' (Ackman), an alternative worth considering is Fairfax, which has many of the characteristics of an early Berkshire. Like Berkshire, Fairfax is an insurance company at the core, invests float in fixed income but also substantial investments in wholly owned companies and publicly traded shares, has no fees, management compensation is reasonable (no share dilution from stock options, $600k salary, etc), and tends to invest in boring industries with solid long-term prospects. It also has much more exposure to international markets and trades at a much lower valuation.
DTB
