Prediction: Buying Berkshire Hathaway Today Will Set You Up for Life
This hybrid enterprise not only offers investors the best of several kinds of investments, but it masterfully uses them together.
Even newcomers to the stock market understand that investing is ultimately a matter of trade-offs. Making bigger gains means taking bigger risks, but taking more risks also often requires more activity. Assets that are easy to passively own, conversely, generally produce weaker results. And ironically, your highest-odds/best-payoff approach isn't trying to beat the market at all, but instead just aiming to match its performance by buying and holding simple index funds.
There's a curious exception to these basic investing realities, though. That's Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Given enough time, shares of this buy-and-hold-minded conglomerate reliably outperform the S&P 500 (SNPINDEX: ^GSPC) even though they seemingly shouldn't.
Better still, it's likely to continue doing so. Buying a big enough stake in Berkshire Hathaway today, in fact, could arguably set you up for life. That's largely because Berkshire isn't quite what you might think it is.
