RishitJain

7 ms·

1. 1.▲
   by RishitJain 3y ago

   And he won that bet.
2. 2.▲
   by RishitJain 3y ago

   The table shows total returns (including dividends) for both BRK and SPX.
3. 3.▲
   by RishitJain 3y ago

   Precisely.
4. 4.▲
   by RishitJain 3y ago

   More likely a result of the size of BRK. At over $700 bn, there are few investment opportunities that can really move the needle.
5. 5.▲
   by RishitJain 3y ago

   The longer you stay invested, the less risky it becomes. Following is the percentage of periods that earned a positive return in the stock market, for different holding durations: 1 day: 52% 3 months: 61% 1 year: 68% 3 years: 75% 5 years: 8
6. 6.▲
   by RishitJain 3y ago

   37% CAGR over a decade? Hope people aren't falling for that.
7. 7.▲
   by RishitJain 3y ago

   Exactly my point in the article.
8. 8.▲
   by RishitJain 3y ago

   As always, Buffett said it best, "By periodically investing in an index fund, the know-nothing investor can actually out-perform most investment professionals." More here: https://monevator.com/warren-buffett-passi
9. 9.▲
   by RishitJain 3y ago

   Nothing to sell. Just making the point that active investing is hard.
10. 10.▲
    by RishitJain 3y ago

    Exactly.
11. 11.▲
    by RishitJain 3y ago

    Huge fan of Buffett myself. Of course, BRK could outperform SPX in the years to come, but the probability is stacked against it. The larger and more diversified the company becomes, the more its returns start mirroring the broader market.