Berkshire substantially outperformed gold in the 60s (when its price was artificially fixed) and the 1980s and 90s (when boomer demographics and tech progress gave us big economic growth). It underperformed in the 70s and was a wash in the most recent 20 years.
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The Buffet/Munger strategy depends on finding productive business opportunities & moving capital from mature to growing companies. Now sitting on tons of cash because there are few productive opportunities given the declining demographics and tech stagnation.
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They performed rather poorly during the crisis years of the early-to-mid 1970s. (As did the stock market in general. But gold greatly outperformed them both).
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Replying to @AndyPeyton @NickSzabo4 and
Gold also outperformed the stock market in those years.
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Markets seem to optimize for short-term returns (with no regard for long term
#suatainability)https://twitter.com/westurner/status/1045962702563266560 …Wes Turner added,
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#valueinvesting is definitely justified for long term investment. When you're buying a significant voting stake, that's a bit differenthttps://twitter.com/westurner/status/967774203566010368 …Wes Turner added,
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It depends on whether there are sufficient opportunities for productive businesses, and whether you or know how to find them, or how to find trustworthy people who know how to find them. Sometimes succeeds, sometimes fails.
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Replying to @NickSzabo4 @AndyPeyton and
There are a bunch of books on "reading financial statements for value investing". It's really not a complicated sieve.
#XBRL … SOME companies want to get bought. … https://www.investopedia.com/articles/investing/030916/buffetts-bet-hedge-funds-year-eight-brka-brkb.asp … > an S&P 500 index fund would outperform a hand-picked portfolio of hedge funds over 10 y0 replies 0 retweets 0 likesThanks. Twitter will use this to make your timeline better. UndoUndo
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