Warren Buffett Has Underperformed the Stock Market for the Last 20 Years
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Re: Warren Buffett Has Underperformed the Stock Market for the Last 20 Years
#2Shows you the power of compounding successful interest early.
Re: Warren Buffett Has Underperformed the Stock Market for the Last 20 Years
#3But if Berkshire didn't exist, would the stock market have performed the same way?
Re: Warren Buffett Has Underperformed the Stock Market for the Last 20 Years
#4funny thing is, it was probably about 10 years ago or more that he made a bet that no active manager could beat the market.
Re: Warren Buffett Has Underperformed the Stock Market for the Last 20 Years
#5As a huge fan of Buffett, I must point to the fact that can materially change this comparison in the years to come:
- stock market returns were abnormally high for the past 15 years
- Berkshire is sitting on a huge pile of cash, ready to invest
This is a very similar scenario to what people were saying in 1999 - Buffett is done etc. I highly recommend reading his biography - "The Snowball" and especially the preface when they describe the speech he gave in 1999, about stock market levels and valuations. Mind blowing, knowing what happened later.
Re: Warren Buffett Has Underperformed the Stock Market for the Last 20 Years
#6Does that table in the article not compare Buffet's share values vs S&P shares value plus their dividends?
Re: Warren Buffett Has Underperformed the Stock Market for the Last 20 Years
#7As a huge fan of Buffett, I must point to the fact that can materially change this comparison in the years to come: - stock market returns were abnormally high for the past 15 years - Berkshire is sitting on a huge pile of cash, ready to invest This is a very similar scenario to what people were saying in 1999 - Buffett is done etc. I highly recommend reading his biography - "The Snowball" and especially the preface…
> As a huge fan of Buffett, I must point to the fact that can materially change this comparison in the years to come:
The beauty of financial 'journalism'. They choose arbitrary points of comparison to fit whatever they are trying to 'sell'. Wonder why 20 years and not the past 21 years or 25 years or 30 years?
> - stock market returns were abnormally high for the past 15 years
Which was expected since we had QE and low rates for much of the past 15 years.
> Mind blowing, knowing what happened later.
Sure. He also said everyone should buy when the markets were collapsing in 2008 ( aka when there is blood on the streets ). And that was great advice as well. But Buffet's problem is that he discounts tech. He famously chose not to invest in microsoft because he didn't understand software and technology.
Re: Warren Buffett Has Underperformed the Stock Market for the Last 20 Years
#8As a huge fan of Buffett, I must point to the fact that can materially change this comparison in the years to come: - stock market returns were abnormally high for the past 15 years - Berkshire is sitting on a huge pile of cash, ready to invest This is a very similar scenario to what people were saying in 1999 - Buffett is done etc. I highly recommend reading his biography - "The Snowball" and especially the preface…
> As a huge fan of Buffett, I must point to the fact that can materially change this comparison in the years to come: The beauty of financial 'journalism'. They choose arbitrary points of comparison to fit whatever they are trying to 'sell'. Wonder why 20 years and not the past 21 years or 25 years or 30 years? > - stock market returns were abnormally high for the past 15 years Which was expected since we had QE and…
Buffett has a huge investment in apple. The tech comment is outdated
Re: Warren Buffett Has Underperformed the Stock Market for the Last 20 Years
#9I get completely different numbers (although the tldr is no less alarming). Does someone want to check my work? https://gist.github.com/RantyDave/41ac164cfcf527a91d3b97c8dd...
Re: Warren Buffett Has Underperformed the Stock Market for the Last 20 Years
#10Earlier quoted context omitted.
> As a huge fan of Buffett, I must point to the fact that can materially change this comparison in the years to come: The beauty of financial 'journalism'. They choose arbitrary points of comparison to fit whatever they are trying to 'sell'. Wonder why 20 years and not the past 21 years or 25 years or 30 years? > - stock market returns were abnormally high for the past 15 years Which was expected since we had QE and…
Buffett has a huge investment in apple. The tech comment is outdated
Despite that he is still underinvested in tech looking at how big a portion tech is now of the S&P 500. Mostly because he does not understand it if he did according to his own rules he would have even larger investments in tech.