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for that reqson a much better investment would be to short berk and buy his major holdings.
or if you like his picks just buy his major holdings. which is what you should do if you like a mutual fund. just buy what they are holding less the stocks that are in fashion, as mutual funds must buy them to attract new customers at the expence of those that trust them.
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Yes, that's why I shorted BRK and bought shares in See's Candies, FlightSafety, Nebraska Furniture Mart, and the rest of them:
Berkshire subs
Sorry for the sarcasm, but most of Berkshire's value comes from the companies that Berkshire owns completely and that aren't traded on public exchanges. It may have been the case that Berkshire looked a lot like a mutual fund 20 years ago, but it couldn't be further from the truth now.
To the original poster: the fact that you think this is a good strategy without thinking about the price/value proposition of the current share price makes me think you should just invest in an index fund. To make it explicit, would you feel equally strong about this strategy if BRKB was at $4,500 rather than $2,800?
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Maybe Osma Bin Laden will put a contract on the old guy and short the stock?
As for not thinking about about value, nothing could be further from the truth...see the post above...I dont believe that the value differs markedly at any time from the price, and thats not an accident.
Your right about the companies he took private. When he finds a big winner, he doesnt want to share it with the street if he can help it, and who can blame him.
The other 2 advantages that he has are the float from his insurance operations, acquired at almost zero cost, and the tax treatment that that float enjoys...this is more like a moderately geared invesmtent trust wrapped up in a tax shelter than a mutual fund.
When you say i feel strongly about this strategy, I can understand why you would think that, but to be honest, Im looking for someone to give me a good reason not to do....
Why cant you get him to manage all your money for 2% a year? Surely it will only cost you what you pay to acquire the shares? Have I misunderstood something here thats peculiar to the US?
Bingo