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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: AdrianC ⎊✹  😊 😞
Number: of 21944 
Subject: Re: Ot scaling back stocks
Date: 01/06/25 10:40 AM
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No. of Recommendations: 1
This is 'timely':

Protecting Your Portfolio Can Come at a Steep Cost
msn.com - Protecting your portfolio can come at a steep cost

Bill Bengen, author of the 4% (now 4.7%) 'rule':
“I don’t think ‘buy and hold’ makes sense for retirees,” says retired financial advisor William Bengen. “Their nest egg is crucial. They have to do whatever is possible to maintain their nest egg at reasonable levels.”
...
“Mine is a tactical, short-term position based on advice from my risk-management service,” Bengen says. “They feel it is a high-risk market environment, and I have to agree.”

Bill Bernstein:
“There’s a hard truth behind such portfolios, which is [that] thinking of de-risking your portfolio every time you get nervous demonstrates a lack of investing discipline,” Bernstein told Barron’s in an email. “The stock market rewards in rough proportion to perceived risk, so responding to increased risk by pulling back from stocks will usually (but not always) be doing the wrong thing at the right time.”

He doesn’t stop there. “And since that’s true most of the time, if you do it repeatedly it’s almost certain that your long-term returns will suffer.”

Bengen agrees. He says if you permanently kept just 25% of your portfolio in equities, his 4.7% rule wouldn’t necessarily hold true, because you might not have enough gains to fund that level of withdrawals.

Maybe different if you use and can stick with a disciplined timing strategy?
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This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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