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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: rayvt ✧☼🐝  😊 😞
Number: of 21944 
Subject: Re: Have about 2.5 years of cash left for expenses
Date: 07/10/23 4:57 PM
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No. of Recommendations: 14
the dreaded (but not real) "sequence of return risk" category

Do you mind elaborating on this Jim?

I'm not Jim, but it goes like this:
Every day is the first day of the rest of your life, and
every year is the first year of the lifetime of our portfolio.

The people who worry about "sequence of return risk" are thinking that the first year of retirement is the only year of concern.

What's the difference between a 30% loss in the 1st year of retirement and a 30% loss in the 20th year of retirement? None. The year after the loss is the first year of the rest of your portfolio. There is nothing special about the first year.

Where the sequence of return risk is actually important is when you retire on a shoestring and a large loss will drop the portfolio value below the "safe" level. So don't retire with barely enough money.
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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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