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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: AdrianC 🐝  😊 😞
Number: of 15058 
Subject: Single-company investment risk
Date: 04/24/2023 10:05 AM
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I came across this Buffett quote from 2014:
"...I believe that the chance of permanent capital loss for patient Berkshire shareholders is as low as can be found among single-company investments".

Likely that's true. Many of us have large portions of our net worth in Berkshire. As single-company investments go, Berkshire is lower-risk, but it is still more risky than, say, RSP (S&P500 equal-weight). And, let's face it, unless you time your buys and sells well, investing in Berkshire hasn't beaten the index for 20+ years.

Example: 2004-2023, adding $1,000/quarter, inflation adjusted, ending balance:
$284,204 Brk.b
$289,087 SPY
$282,702 RSP

https://www.portfoliovisualizer.com/backtest-portf...

Your results might vary (I think mine have, for the better). Going forward, though...what to do?

Would you put a large sum into Berkshire in a taxable account? Not a trade, but as a long-term holding.
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