If Berkshire Hathaway has such an amazing track record, why don't more people recommend it?
Comments on Berkshire's new upcoming successor is appreciated as well.
Thanks for your help!
Answers:
They don't sell partial shares and as of today I believe a one share costs over $108,000, so it is not a reality for most people. They might also be closed to new investors and I believe that you can't only purchase one share. You can invest in companies owned and operated by Mr. Buffett like Geico.
stocks do not have share classes, mutual funds do. Secondly, it's not really recommended because not many people can afford to buy shares of Berkshire Hathaway. The track record is great over the long haul, but even a 1% dip could hurt you. People listen to Buffet's advice - the market even moves up or down when he makes investment decisions, but he can't possibly be the be-all-end-all of investing. He definitely knows the fundamental side of things.
I am not sure about the track record, but I believe you may be referring to the Berkshire Hathaway Holding Company. You can go to yahoo finance and enter the symbol BRKB and get some info. Previous close was 3,635/share.
Because past performance is no guarantee of future results.
The number one rule of investing
"Don't put all your eggs in one basket."
Berkshire Hathaway does have a solid track record for both class A and B shares. I feel that people do not recommend the shares as much as “they should” is because they are very thinly trades and very expensive. They have a very high Beta, and over priced. I like to compare the shares to pink sheet (OTC-BB/ penny stocks), with a solid company. One of the major reasons penny stocks are so volatile is because they are so thinly traded. If the stock split a few times and the price came down to something “normal” I think it would have a much higher volume, and attract more investors. However, Buffet would never do that as long as he is still in charge. So, when he leaves in the next 2 years, we might see the prices finally be forced down.
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