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Buffett Considering BRK Paying A Dividend To Shareholders
No, of course not; I was comparing it with other real good mutual funds, as one should. Which it also outperforms iff you go back to its inception --- it had tremendous outperformance 1990-98. But look at its $10k growth for the last 20/15/10/5/3y etc etc against DODGX or FCNTX. Not consistent outperformance, not consistent underperformance, it comes and goes, and at many points it's right in there. As I wrote, a real good fund, not invariably a superior one. That's all. I have owned it.
Certainly with each passing year (of late), BRK has lost its Alpha mojo.
Due to its girth, Berkshire is unable to gobble up the companies that drove its out performance when Mr. Buffet started the conglomerate mutual fund in the mid 1960's.
Berkshire's cash pile, at smaller levels, was considered a virtue. Now, it's soooo massive, it's a drag on performance.
BRK's free cash flow (FCF) from the wide moat companies in the portfolio, what Mr. Buffet calls "owner earnings," will still provide a cushion. If and when BRK initiates a (let's say 2-3%) dividend, shareholders will likely get better total returns.
Your grand kids will ultimately own a "dividend aristocrat!"
Comments
Regards,
Ted
You imply as to this: BRK/A versus SPY, all of 1999 through August 15, 2017
One may plug in whatever other ticker into this chart to compare.
Below period, total return =
BRK/A = +281%
SPY = +181%
http://stockcharts.com/freecharts/perf.php?BRK/A,SPY&n=4685&O=011000
ADDED: Fido Contra and Growth
http://stockcharts.com/freecharts/perf.php?BRK/A,FCNTX,FDGRX&n=4685&O=011000
Due to its girth, Berkshire is unable to gobble up the companies that drove its out performance when Mr. Buffet started the conglomerate mutual fund in the mid 1960's.
Berkshire's cash pile, at smaller levels, was considered a virtue. Now, it's soooo massive, it's a drag on performance.
BRK's free cash flow (FCF) from the wide moat companies in the portfolio, what Mr. Buffet calls "owner earnings," will still provide a cushion. If and when BRK initiates a (let's say 2-3%) dividend, shareholders will likely get better total returns.
Your grand kids will ultimately own a "dividend aristocrat!"