· Posted 02/05/2022
Berkshire Hathaway Inc
Diversified Financial Services
Relative Return Over Time
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To summarize in plain language, Berkshire is a decentralized company with great managers and an excellent track record of
picking businesses. It has the ability to compound money over decades without having to worry
about short term market fluctuations or fads, while still being able to capitalize on them if
they occur (e.g., Apple).
This is nonsense because, the SP500 is a market cap weighted index. Berkshire Hathaway has a large
weight in the index because of its size and not because it is cheap or good.
Berkshire's stock price does not reflect its intrinsic value, but rather reflects the
popularity of Buffett as an investor among other things. The company itself has been around
for decades, and yet the stock price still fluctuates wildly with every news story about
Interesting recent analysis (July 11th 2022) for Berkshire Hathaway: