Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 21
BRK stock price has more than doubled in five years.
There’s a lot of discussion here about maximizing returns through options but you can make a bundle with doubling in five years if you own enough stock. A long time ago I decided to maximize buying to get big real returns.
I’m not innocent when it comes to leverage. I hold mortgages in order to buy more stocks, most recently via 30 year fixed at 2.875%. I consider debt to be a part of my portfolio. It’s a small part and shrinking due to inflation and investment returns.
So I don’t feel bad if someone has higher returns because I own plenty and I’m up enough.
Shaun
No. of Recommendations: 3
I’m not innocent when it comes to leverage. I hold mortgages in order to buy more stocks, most recently via 30 year fixed at 2.875%.
Early on when Apple started paying a dividend, it yielded something over 2.25%. I know someone who mortgaged his house using an I/O loan at 2.5% or so and put it all into Apple and used the dividend to cover the interest payments. A few years later, the stock had more than doubled, likely more than tripled, and it turned into a terrific investment. By the time he had to pay off the principal (5 years maybe?), the stock was worth a few multiples of the loan!
No. of Recommendations: 6
I’ve got some BRK that’s up 6X since I bought because I had available credit on a HELOC when the price was very favorable. Following the discussions “here” enabled me to time that.
Don’t have a HELOC now but have lots of direct and BRK indirect cash.
Always kept borrowing at a safe level. The gain has been fantastic in BRK.
Shaun
No. of Recommendations: 2
I just did a quick check today and Vanguards, VOO (SP500) fund is up 92% compared to BRK.B 122% over the last 5 years according to a google finance comparison.
No. of Recommendations: 2
I get VOO at 15.54% annually the last 5 years and Berkshire at 16.79% annually.
Good enough for me.
No. of Recommendations: 1
I just did a quick check today and Vanguards, VOO (SP500) fund is up 92% compared to BRK.B 122% over the last 5 years according to a google finance comparison.
Does that comparison include dividends or not? Does it assume reinvested dividends, or does it place the dividend cash in some T-bill equivalent rate over the period?