29 July, 2020

Quora Answer: What is Your Favourite Thing about Investing in Berkshire Hathaway for the Long Haul?


Over the last 50 years, ever since Warren Edward Buffet took control in 1965, Berkshire Hathaway stocks have given a compounded return of just over 20% annually.  To put that in perspective, if you had US$10,000 in the stock in 1965, it would be worth US$250 million now.  That alone is testament to the genius that is Warren Buffet.

Even now, Berkshire Hathaway is essentially undervalued.  Despite the US$15.4 billion write down on the value of Kraft Heinz, which cost a US$4.5 billion book loss, Berkshire Hathaway was sitting on US$120 billion in cash reserves as recently as last quarter.  They spent some of it in stock buyback, but that is a testament to the strong financial health of the company.  If you intend to have funds aside over an extended investment horizon, this stock is a must buy.



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