One of the greatest investors of all time once said its almost impossible to outperform the market over long periods of time (10+years). That same investor also outperformed the market for a very long time.
Now were are seeing that Berkshire Hathaway's returns are starting to look lacklustre compared to the overall market. Coupled with the poor calls ranging from APPL to Kraft Heinz KHC, cracks are starting to appear in the model.
On top of all that we add to the fact that Berkshire is now BUYING amazon (at 1900$??) with the rationale being it's never too late to get in on a stellar company. To say that Amazon will keep performing the way it has in the last 10 years is a gigantic fallacy. Even though he did not directly buy the shares, he IS still in charge of fund management oversight, and buying Amazon at these levels could potentially be a huge blunder.
Has the market finally caught up with Buffett? If it's impossible to outperform the market over the long term, has the time for Berkshire's reckoning come? It is not a secret that Buffett has been making big mistakes lately, the beginning of a worrisome pattern that seems to be extending with the latest round of AMZN investments.
It looks like big Buffett's old age might be blurring his vision on the world economies strength.
Now were are seeing that Berkshire Hathaway's returns are starting to look lacklustre compared to the overall market. Coupled with the poor calls ranging from APPL to Kraft Heinz KHC, cracks are starting to appear in the model.
On top of all that we add to the fact that Berkshire is now BUYING amazon (at 1900$??) with the rationale being it's never too late to get in on a stellar company. To say that Amazon will keep performing the way it has in the last 10 years is a gigantic fallacy. Even though he did not directly buy the shares, he IS still in charge of fund management oversight, and buying Amazon at these levels could potentially be a huge blunder.
Has the market finally caught up with Buffett? If it's impossible to outperform the market over the long term, has the time for Berkshire's reckoning come? It is not a secret that Buffett has been making big mistakes lately, the beginning of a worrisome pattern that seems to be extending with the latest round of AMZN investments.
It looks like big Buffett's old age might be blurring his vision on the world economies strength.
