No. of Recommendations: 22
To be fair, I don't think Ted was looking for a large outperformance in DVA. The position is in one of BRK's pension funds, not in the main equity portfolio. Ted probably wanted a reliable, solid long-term performer and this is what he got.
I think this is an important point that is often overlooked in our wanting performance data on T&T. They are not only investing for gains for BRK shareholders but for safety for BRK retirees - present and future.
I'm as curious as their outcomes as you are - and would love to seen them. But Todd was originally hired to replace Simpson as Geico's stock portfolio manager. Then Ted was hired, and a lot of both of their early money was to manage pension fund money.
So an accurate measure of how they might manage BRK investment funds - ex pensions - would require some adjustments.
I can understand why Buffett doesn't get into this level of analysis. He seems to have been well satisfied with their approaches (and track records) to investment before he hired them - i.e., how well they matched his own. And I think - particularly as his remaining time grows shorter - he would take action if he were concerned.
And I also note that he uses them for other significant issues other than the money they manage. Helping him with the analysis of potential acquisitions is one. Trouble shooter is another - e.g. Todd with Geico. Ted also manages other activities.
So I'm going to trust Buffett on this one, knowing his concerns about his shareholders as partners. I think he would take action if he thought there was a problem.
He isn't obligated to inform us about his judgments to everything he does.
And, frankly, what other option do we have other than to trust his judgment?
