Is BRKb a better option than a S&P etf?

[organicqueen]

BRKb’s assets are broadly similar to the S&P 500 and the historical performance is quite similar, but as a stock doesn’t have the same downside of Irish ETF taxation.

I’m thinking it might therefore be a better option for a long term growth option.

Interested in peoples thoughts?

 

[andramaxy]

@organicqueen These two articles might be worth a look - https://www.fool.com/investing/2023/12/07/better-buy-berkshire-hathaway-or-vanguard-500-inde/ https://www.fool.com/investing/2023/10/27/74-warren-buffett-portfolio-invested-in-5-stocks/ . Just one opinion obviously, but some interesting data points.

The performance of Berkshire might be similar to the S&P500 but it would concern me that 75% of it is in 5 stocks compared to the S&P where the top 5 stocks account for more like 20%. Berkshire is much less diversified too, at 50 stocks vs 500 in the S&P. I’d also be concerned about what happens when the Buffet and Munger stop controlling it as they inevitably will soon.

Personally I’ve decided to just suck up the tax situation with ETFs, the cost is worth it for the convenience and safety in my view. If you’re determined not to buy an ETF then the likes of JAM might be a better analogue to an S&P500 ETF.

 

[budis10]

@andramaxy Munger died last month.

 

[louismartin]

@budis10 Lol...

On a serious note, it will be interesting to see what happens when Warren Buffet eventually goes.

The way BH is structured means there is a "Net Asset Value", which differs to the actual trading price (for those that might not be familiar).

I've always wondered if it will end up trading at deep discounts to the NAV due to BH related panic, rather than any actual issues with the underlying businesses BH invests in.

 

[andramaxy]

@louismartin That would be my concern and I don’t know why somebody would take that gamble with their life savings when there are options like JAM or ETFs out there.

 

[andramaxy]

@budis10 Oh sad, had not heard that.

 

[budis10]

@andramaxy Yeah, only about 2 weeks ago.

99, a helluva’n innings.

 

[elimatta]

@organicqueen Ireland is subject to U.S. estate tax, if yes, this would be paid on your death when >60k, as a high as 40% over usd 1m. Whereas with the ETFs you avoid this. https://www.goodbody.ie/insights/your-investments/us-federal-estate-tax-what-you-need-to-know

 

[rereward]

@organicqueen I have been wondering the same!

If investing in BRKb is a better option, which is the best way to invest in it? In terms of which broker to use for example.