No. of Recommendations: 21
Just a talking head moment, feel free to ignore.
Since around the third week of September, Berkshire has been underperforming other S&P 500 companies, cap weight or not.
Anecdotally, I have noticed that trends of outperformance and underperformance tend to change direction at year end, as portfolio managers do window dressing and change their tracking error career risk tolerance level.
At end 2022, the outperformance suddenly turned into underperformance.
At end 2020, the underperformance suddenly turned into outperformance.
At end 2018, the outperformance suddenly turned into underperformance.
At end 2015, the underperformance suddenly turned into outperformance.
Consequently, I think there is a slightly better than even chance that Berkshire may start outperforming other big stocks for a little while, starting right after the new year.
A graph of the relative performance. Horizontal line means market tracking.
stockcharts.com: SharpCharts | StockCharts.comJim
