Two Big Benefits Berkshire Hathaway Has Over Mutual Funds (and Warren Buffett isn't one of them)

Berkshire Hathaway offers two significant benefits over most large cap mutual funds. Here I'm not talking about Warren Buffett. Rather, it's the company's tax-efficiency and ability to buy whole companies. While it's not a replacement for low cost index funds, I've found it to be a great addition to an otherwise well diversified portfolio.

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#berkshirehathaway #brk #robberger

ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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[pw]

I've always looked on BRK as a fund with zero fees or charges.

[KarlBrkr]

Yep I bought in at $104 after the financial crisis and will hold this forever. Just added more shares today with new funds. Great core holding. Better than bonds.

[ms-xxzw]

Replies aren't working so I'll try at the main level.

Apple is not 40%+ of Berkshire's valuation. It is BRK's publicly held stocks that Apple is 42% of. Their publicly held stock portfolio is around $367B while BRK has $1T in total assets of which $120B is cash.

Apple is maybe 15% of BRK's entire holdings.

[NouraEl-kl]

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.

[Jack-bxow]

My reticence with BRK is around how closely the future success is tied to Buffett and Munger, who are both well up there in terms of age

[chrisbentley]

BRKB can certainly vote and attend the annual meeting. The vote is just 1/10, 000 less that an A share vote…the proxy statement spells it all out for you. 2022 proxy page 3 of 18.

[aconsideredmoment]

I noticed during periods of increased market fear, BRK.B investment often increases making it part of the portfolio that could be sold in times of emergency. Otherwise, it is part of intergenerational plan, tax efficient and qualifying for step up basis. Well diversified. Markel was tempting, but BRK.B is the stalwart. I am concerned about how insurance will transform with increased claims with increases in natural disasters and the impact of autonomous vehicles. They seem to be maximizing profits on rail, petroleum, while investing in the future, such as renewable energy. Well-diversified.

[mrstein]

I really like BRK.B. It’s like the SP500 but with more upside and less downside.

[Ambassador]

Probably what I appreciate most about Rob is his “Woody Hayes Approach” to investing. Hopefully, it won’t get him thrown off YouTube.

[robertryan]

I definitely like a good Blizzard now and then!

[hotrod]

No dividend but also no expense ratio for being actively managed.

[mrjuvy]

I got in when Warren bought the BNSF RR way back, lots of upside for the future.

[royprovins]

Even Buffett said if you want to own a conglomerate the S and P 500 is one

[prsjds]

Thank you Rob for sharing your knowledge! It’s well received and much respected
Jack from Pennsylvania

[richardm.]

Some people used to say owning GE was like buying a mutual fund. I love Buffett, but after he is gone, I would not overweight Berkshire.

[BatisteBieler]

In Switzerland there is not taxes on capital appreciation. But you do get taxed on dividends.. Would it make sense for a Swiss investor to put money into BRK-B? Is it tax efficient is there or is there something else I am forgetting?

[johnwhite]

Bark has access to deals most other investment vehicles don’t. He can go to say hurling ton northern and offer to take encore company private. Few PE companies do that.

[faisalamin]

If your are still reading this, BRB-B or SCHD

[leesmith]

2:02 i just looked at a random search result and it says it's portfolio is 40% Apple. if true... diversified fund? i'd consider it as your own apple holding and a separate diversified fund.

[JJJ.]

Would like to buy Berkshire but at 22+ PE it's too expensive.