, 7 tweets, 2 min read Read on Twitter
A meaningful outperformance for $BRK during 2018 in both BVPS and per-share market value.
Imo $BRK today is like an index which probably will keep outperforming the S&P500 by 2-3% annually. Other such indexes might be $QQQ, $VIOO, and $IBB. Use a value averaging strategy with those 4 instruments:
buy more of them when they go nowhere or down, buy less or even sell some when you go up too fast, and imo you’ll have a sound strategy to build wealth faster than the S&P500 without doing anything exceptional.
You’ll have three effects in your favor: 1) you earn money, you save it, and you add new capital to your investments; 2) you tend to buy more when prices are low and build dry powder when prices are high; 3) the instruments you have chosen should outperform by themselves.
Given the fact the S&P500 has returned 9.7% annually during the last 53 years, and there is really no reason to believe the next 50 should be meaningfully worse, this strategy could yield a double digits cagr for a very long time.
If you go back 77 years instead of 53 years, you get an even better annual return for the S&P500: 11.8%.
“Over the next 77 years the major source of our gains will almost certainly be provided by the American Tailwind. We are lucky - gloriously lucky - to have that force at our back.”
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