alt Hacker NewsBRK is like a conservative S&P500. It offers enough diversification off the "total market" funds for me that I invest a small but material portion of my "safe money" with them.
Sort of like holding boring dividend stocks without the dividend.
BRK is like a conservative S&P500. It offers enough diversification off the "total market" funds for me that I invest a small but material portion of my "safe money" with them.
Sort of like holding boring dividend stocks without the dividend.
BRK has a beta of 0.7 (meaning it's less volatile than the market) because a third of it is just cash (probably because they want to buy the blood in the next crash like they did in 2000) so I'm curious why you wouldn't just keep that part of your portfolio in cash like he does? Now me personally I think that strategy is kind of dated because the dollar has lost 39% of its value over the last twelve months because it's only as good as the blood sweat and tears of the people who mint it. Dividend stocks like Heinz aren't good investments these days either, since as far as I can tell, those dividends have been coming straight out of the stock's value. Even Buffett turned his back on them. A tidal wave has been rolling through this country sweeping away everyone who follows the safe socially sanctioned wisdom about investing.