No. of Recommendations: 4
We've been thinking about lowering our Brk exposure for years now. This would only be done in the retirement accounts. The index candidates are the obvious target for us, but the relative valuation has not presented the moment for us. We likely would consider doing some of this when we felt we could get risk adjusted earnings parity for our Brk positions. We'll begin drawing down in the next couple years.
This is it for a lot of us, I think. We've done quite nicely in Berkshire and learned a lot along the way. Now we're approaching the drawdown phase, maybe we need a bit more diversification? But the relative valuations (Berkshire vs a suitable index fund) are seldom, if ever, compelling.
We're probably all too cheap. I'd wager many of us could switch to the index and live just fine off the dividends, but where's the fun in that?
