So we all know why index funds are the way to go, it’s cause most of us are statistically dumber than mr.market. So we hubbly accept our stupidity and and ride the sp500 gravy train. Though, their are a few that are smarter than mr.market and have a long track record of being smarter than him. Buffet and Munger and their Berkshire Hathaway Inc. have been much much smarter. BRK functions as a holding company and spans across multiple industrial sectors.
So should I sell my index funds and buy BRK?
I don’t really see the point. If anything you’ll be taking additional risk compared to the S&P for not much upside. In his recent shareholder letters Warren Buffett has admitted that BRK will probably not significantly outperform the S&P simply because it has grown so large. It makes more sense to invest in the S&P (or better yet, the total market…look at SWTSX) because of the diversification.
BRK-B shares currently have an intrinsic value that is over market share price based on NPV. I’m kinda digging on that.