No. of Recommendations: 2
I recall at one of the annual
meetings, a question was posed as to why the cash and float are not just invested in an S&P
index fund. After all, this is what Buffett has recommended that others do. Warren gave an answer that I found somewhat unsatisfying- that brk is too large to do so and would cause a disruptive swing in the market.
Had he done this, we would have been far ahead, especially given the float, guaranteeing outperformance.
Maybe something to think about in the future rather than trying to pick individual stocks. Then focusing more resources on maximizing profits in wholly owned subsidiaries.
