GAMCO Investors CEO Mario Gabelli joins 'Squawk Box' to discuss Warren Buffett's leadership at Berkshire Hathaway, latest developments on Paramount's merger talks, campus protests, and more.
This is great and all, but the S&P will take it from here. Berkshire is basically an actively managed index fund at this point paying zero dividend with all the risks of active management. It’ll naturally underperform the S&P. Basically a handful of misses by Berkshire will reduce its overall return while the S&P naturally sheds losers and picks up winners staying ahead of the game. Berk is just too big to outperform now. It’s in the weird zone of owning a lot of businesses while not being diversified enough. Oddly, the best years of Berkshire were due to lack of diversification because 1-3 assets could crank outsized returns. That same effect wont be realized in the years to come.
Say you're right, what you are saying is that the fundamentals of the S&P will increase at a faster pace that Berkshire Hathaway which could certainly be true. But what you are forgetting is, the price!!!! The S&P 500 as an index fund is vastly more overpriced compared to Berkshire Hathaway, so including the price in your calculations, then it sure will get you a different result.
As for myself, I’d like to offer some “Advice on the Choice of a Partner.” Pay attention. Look first for someone both smarter and wiser than you are. After locating him (or her), ask him not to flaunt his superiority so that you may enjoy acclaim for the many accomplishments that sprang from his thoughts and advice. Seek a partner who will never second-guess you nor sulk when you make expensive mistakes. Look also for a generous soul who will put up his own money and work for peanuts. Finally, join with someone who will constantly add to the fun as you travel a long road together.
The most important thing in investments is not having a high IQ, thank God. I mean, the important thing is realism and discipline. And you don’t need to be extraordinarily bright to do well in investments, if you are realistic and disciplined.
he is richer bcz he put more money into this, mean he own more shares than the others, apart from that, the wealth growth rate of Buffett and others shareholders who stay on same timezone are nearly the same
I would never own Berkshire stock. It doesn't pay a dividend and I'm not paying for Buffett's lear jet fuel. Unrealized gains doesn't put a penny in your pocket.
Buy 100 Class B shares, sell 1 share per year. Voila, 1% dividend. Also at cgt and not at the actual dividend tax rate. So about 33% more pennies in your pocket - depending where you pay taxes of course. If you were going to reinvest dividends anyway, just don't sell your shares. Double Voila, no tax on dividends.
@@profkg6613Buffett, himself, agrees with the poster about corporations and the super rich not paying their fair share. So maybe, you’re the one that needs more financial education 😅
