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Warren Buffett Steps Down as Berkshire Chairman, Names Son to Replace Him

323 points · 221 comments · saimiam

  1. Zaraif13 · · focus · HN ↗
    To anyone who owns BRK-B shares (or BRK-A if you have that kind of money), over the next decade your money will likely grow on par with if not at a slightly higher rate than keeping it in an S&P 500 Index fund. Regardless of board or management changes, BRK will stay a better long term bet than an index fund. Both options have similar amounts of risk.
    1. bluecalm · · focus · HN ↗
      I hold BRK stocks and I expect it to underperform the market on average (but also be a very good hedge in case of big downturn). BRK is in big part short term treasuries then a stock portfolio then a core business (insurance, energy, rail, manufacturing etc.). While it's reasonable to expect the core business to outperform there is no way the whole thing is a favorite to do so because cash is a big drag.
      1. throwaway2037 · · focus · HN ↗

            > but also be a very good hedge in case of big downturn
        
        Are you aware that BRK cratered during the 2009 stock market crash? During a crash, except gov't bonds, pretty much everything sells off equally. There is a joke on Wall Street after 2009: During a crash, correlation on all assets goes to one (1.0).
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