MoneyWatch Recently, after giving a speech based on my latest book, Think, Act, and Invest Like Warren BuffettI was asked a question that I've often received over the years: Instead of building your own globally diversified portfolio, why not just buy the stock of Buffett's company, Berkshire Hathaway BRK.

The question reminded me of a bit of research I did when asked the same question about seven years ago. Back then, I suggested the following to the person who asked the question first. Let's take a time machine back to January 1, remember, this was back in early in You inherited a large sum of money and decide that based on Buffett's spectacular track record you will invest it all in BRK.

Over the next 10 yearsBRK.

Always Bet On Berkshire Hathaway (And Here's Why) | Investopedia

A returns a healthy The table below shows the returns for the five major U. You'll note that the BRK. A outperformed only one of the five major U.

In addition, an equally-weighted 20 percent each portfolio of the five asset classes, rebalanced annually, would have returned A by 2 percent a year. Ten years of underperformance would test even the most disciplined, patient investors.

The typical institutional investor reviews performance on a three-year cycle. Thus, even if Buffett went on to outperform in the future, it's likely that most investors wouldn't have been around to benefit.

how do i purchase berkshire hathaway stock

To bring us up to the present, the table below updates the data to cover the period January through September Composer and author Peter Buffett tells Jill Schlesinger what he learned from his dad, multibillionaire investor Warren Buffett. A underperformed three of the five major U. That's not much of a difference, and it certainly wouldn't earn someone the title of "Oracle of Omaha.

Rune easy way to make money in earlyI explained to that first questioner that, while Buffett probably had the greatest track record of any investor, we only know about his great performance in hindsight.

Forty years earlier, there was no way to know that he would turn out to be various option strategies greatest investor of his generation. And, while there have been many investment managers who have tried to mimic Buffett's results, few have come close to replicating them. That raises the question: How long does one wait until you're sure that an investment manager's track record is based on skill, not luck?

A related problem is that by the time you can be confident that the manager's results are skill-based, not just the result of a lucky outcome, he's probably managing a much larger amount of assets, which makes it harder to outperform. A third problem can arise if a manager goes through a period of poor performance.

Should I use my (k) to buy 1 share of Berkshire Hathaway? - MarketWatch

Exactly how how do i purchase berkshire hathaway stock do you hang in there before deciding that either he has lost his touch or that increased assets under management have become too great a burden? Tomorrow will take a look at how do i purchase berkshire hathaway stock important issues you should consider before deciding to invest in BRK. Larry Swedroe is director of research for The BAM Alliance.

He has authored or co-authored 13 books, including his most recent, Think, Act, and Invest Like Warren Buffett. His opinions and comments expressed on this site are his own and may not accurately reflect those of the firm. Find out what activities and attractions make these 20 cities and town some of the best places to retire around the world. Generics are a great way to save money in lots of cases, but here is a look at some clear exceptions.

It's Almost Time to Sell Berkshire Hathaway Stock, Even If You Love Warren Buffett. Here's Why - TheStreet

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how do i purchase berkshire hathaway stock

By Larry Swedroe MoneyWatch November 5,6: Comment Share Tweet Stumble Email. Featured in Moneywatch 20 of the coolest places to retire in the world Find out what activities and attractions make these 20 cities and town some of the best places to retire around the world 10 products you should never buy generic Generics are a great way to save money in lots of cases, but here is a look at some clear exceptions.

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how do i purchase berkshire hathaway stock

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