Buffett Could Not Beat SP500

Discussion in 'Wall St. News' started by ironchef, May 7, 2019.

  1. 0008

    0008

    [​IMG]


    In the 1970s and 80s his performance was very good when the s&p was rather flat. After that his performance wasn't that great.
     
    #11     May 8, 2019
  2. themickey

    themickey

    These recent positions of AAPL & AMZN, in my opinion too late.
    AAPL in particular is a very large position, 16% of portfolio if recalled correctly.
     
    #12     May 8, 2019
  3. newwurldmn

    newwurldmn

    A deep value guy whose keeping up with a tech led rally is impressive
     
    #13     May 8, 2019
    Frederick Foresight and ironchef like this.
  4. schweiz

    schweiz

    From march 2009 when I posted my calculations, he could do barly better then the S&P and even had a year he was beaten by the S&P. A big difference with the past decades. We will see if he will be able to make the difference again like in his good years.
     
    #14     May 8, 2019
    murray t turtle likes this.
  5. srinir

    srinir

    This chart is wrong. BRK.B does not have dividends and SP500 has dividends. You need to compare apples and apples, that means you need to include dividend reinvestment. Most of the chart packages can not handle this. Morningstar has growth chart takes into account dividend reinvestment.

    Same chart in M*. BRK.B did not beat SP500 by 300% as you posted so far. It is about 50%, still impressive

    Snap7.png
     
    #15     May 8, 2019
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  6. dozu888

    dozu888


    if you back test any sort of value-driven model, like what protfolio123.com has, you will see massive outperformance with models optimized on a few fundamental metrics.

    so this was the genius of Buffett... long before anyone else was aware, he knew there was an edge in picking the most 'undervalued' companies and he did the best, hence the massive success.

    nowadays all that stuff can be done by a 3rd grader with a portfolio123.com subscription... the edge is no longer there.

    no surprise he's just market performing for the past bunch of years..
     
    #16     May 8, 2019
  7. 0008

    0008

    So you mean he has learned how to use valuation to pick cheap stocks before everyone does it. This makes him the top 10 rich people in the world.
     
    #17     May 8, 2019
  8. dozu888

    dozu888

    can't say he was the only one in the world lol... but you can't argue with success... he did it with great success.
     
    #18     May 8, 2019
    themickey likes this.
  9. %%
    Strangely, he warned them for years, how hard it is to beat S&P 500[SPY]. Most did not believe him.LOL:cool::cool: But much better for many years, than SPY
     
    #19     May 8, 2019
  10. Just a quick question for all the Buffett critics here: How many of you think Trump is a business genius?
     
    #20     May 9, 2019
    murray t turtle likes this.