- Berkshire is a strong candidate for an overweight position in your portfolio, especially if your goal is solid return with capital preservation.
- Because it is cheap Berkshire is a good bet to outperform the S&P 500 over the next ten years regardless of what the market does.
- Astute and informed shareholders, especially of A shares, will help future management resist bad ideas and maintain a steady course.
- Diversification among best of breed businesses provides defense in various economic and market environments; buybacks help too.
- Berkshire may serve as a core holding around which to build your own diverse portfolio - almost but not quite an index.
For further details see:
Buffett Shaped Berkshire As An All-Weather Conglomerate: It's OK To Be Overweight