Quote:
Originally Posted by manaboutown
Well, a significant portion of my equity portfolio is in BRK as back in the mid 1980s I bought a few shares, set it aside and forgot about it figuring Warren could do better with it than I could. I have not been disappointed. Over the years I also bought some stalwart standards and index funds and have held onto them. I see no reason to sell and pay taxes as most are in taxable accounts. What I have done is retain most of the proceeds received from recent real estate sales in cash, T-bills, money market funds and such. I see BRK taking a bit of a hit when Buffett bows out or checks out, so to speak, but I plan on holding onto it all as if I sold my LTCGs would be enormous.
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Long term investment in the USA is the best world wide investment choice one can make in today's world. With the SP500, about 60% of the sales are domestic, and 40% international, from memory, rounded and could be precisely wrong at the current moment. But the point of the stat is that embedded within the SP500 are well run international companies, which diversifies the US domestic only view into a global investment.
Buffet / Berkshire Hathaway is no different, offers mostly US domestic growth, is industry diversified, and has excellent management for the last 50 years. . . No different than many of the top 50 US stocks . .
The topic at hand is a market sell off, correction, repricing, call it what you will.
They come along with regular frequency, which is the common, some big 20-50%, some little < 20%
My comment about Buffet is that he is not an individual investor, and all of us here (not guaranteed but ) are also not a Buffet.
Buffet is also human in his investments, my point about his losses. So using Buffetisms as your investment thesis is an easy answer to a cognitive dissonance, and it will work, until it doesn't, like everything else in life, as it did for WB as well.
Some of us will sell high and buy low. .
Others will hold on and wait. .
There are a few sell high and buy low peeps on TOTV,
there are many buy and hold on TOTV, assuming the future will be like the past.
The future seldom repeats but it often rhymes. . .
You pick your choice and live with the outcome. . .
Shiller and others just provide a valuation point of view of the current market,
doesn't mean it can't go higher, just means that any error in judgement (federal reserve)
or unforeseen negative event (domestic or geo-political or mother nature (meteor impact) )
may incur a price adjustment, when and for how long is always the uncertainty.
It's never black and white, and it's never the same. .
YMMV