We can all sit around and post about what has done better than what historically.
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actually its just sitting around and going tech is the future and then working out which stock will do best based on this. one could argue the mag 7 will still keep growing far faster than the broader market even at these lofty valuations today. but will berkshire once buffett is gone ? better hope he told his 2ic the secret formula otherwise might just end up being an index fund virtually.
no dis-agree about all in cash , maybe a little but buffettt uses float ( which is in effect cheap leverage which ord folks will never have ) to invest in boring old reliable companies he considers value but have high margins and good cashflows and churn out div's yr after yr even in down cycles and have low vol. which means low risk with the float. thats why i think he never invested in tech. ( too vol )
he even uses tax deductions for accelerated depreciation which is in effect another int free loan.
thats what ben graham taught buffett
ben graham once said that in investing it is not necessary to do extraordinary things to get extraordinary results
no buffett said himself that if he invested the float in stocks over time he would make much more than bonds or cash. traditional insurance companies invest the float in cash or bonds normally , not buffett.
he has increased the float many more times by investing it in companies. the float is nott recognized in the acxcounts as far as i believe
Buffett doesn't care about volatility/beta. Just the difference between price and value at that given time, and how that compares to his other investments.
If anything volatility is a good thing as it creates greater discrepancies between price and value, which presents an investor with the right but not the obligation to participate in a transaction at that price.
Of course it's recognised in the accounts, just like any insurance company. As float equals cash then it can be said the entire float is invested in cash. Been that way for most of last 20 years.
How on earth can you possibly think the float isn't recognised in the accounts?
The biggest display of your bulldust ignorance to date.
Please explain how you came to think the float escaped the accounts.