2 Good Reasons to Avoid Warren Buffett's Berkshire Hathaway

The numbers blow your mind away.  

If, in 1968, you invested $20.50 in a share of Berkshire Hathaway  (NYSE: BRK-B  ) (NYSE: BRK-A  ) , it would today be worth about $193,000.  And that's just one share.  If you splurged and spent about $125, you'd now be a millionaire with just six shares of Berkshire Hathaway Class A stock to your name.

But that was then, and this is now.  No one has ever gained their financial independence by pining for the types of returns we can see with hindsight.  

As it is, there's little chance that Berkshire will perform anything like it has during its illustrious past.  In fact, there are some pretty compelling reasons for investors--especially beginners--to shy away from owning stocks.

Motley Fool contributor Brian Stoffel highlights two such reasons in the video below, and discusses what they could mean for investors.

The greatest thing Warren Buffett ever said
Warren Buffett has made billions through his investing and he wants you to be able to invest like him. Through the years, Buffett has offered up investing tips to shareholders of Berkshire Hathaway. Now you can tap into the best of Warren Buffett's wisdom in a new special report from The Motley Fool. Click here now for a free copy of this invaluable report.

Source: Berkshire Hathaway, NDTV Profit, YCharts, Nick via Wikimedia

Follow along as we countdown the days until Berkshire Hathaway's annual shareholder meeting in Omaha, Nebraska on May 3. A handful of Fools will be attending the event and live chatting with other Fools around the globe! Click HERE to set a reminder for yourself about the live chat!

The previous articles in our "12 Days of Berkshire" series:
12 Reasons Warren Buffett Is an Incredible Investor and How You Can Learn From Him

11 Things in Your House Making Warren Buffett Money

10 Reasons Berkshire Hathaway Is the Best Stock You Can Buy

9 Warren Buffett-Approved Dividend Stocks

8 Stocks Warren Buffett Should Never Buy

7 Things We Can Learn From Warren Buffett’s Biggest Money Mistakes

6 Companies Warren Buffett Helped Save

Warren Buffett’s 5 Best Businesses

4 Key Events in Warren Buffett's Investing Life

3 Warren Buffett Stocks You Can Buy Today

Read/Post Comments (2) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 01, 2014, at 12:48 PM, spirach2 wrote:

    Gosh, Brian, that was truly brilliant.

    So, your incisive analysis, after weeks of work, no doubt, has led you to the conclusions that

    1) Buffett and Munger are old.

    2) Berkshire is big.

    Wow. That's Earth-shattering stuff there.

    I'm gonna run right out and alert the Nobel committee about work.

    Too bad you don't know enough to properly assess what BRK is --regardless of Warren and Charlie-- or to recognize the difference between performance of the company and performance of the stock price.

    But I'm sure you got yourself a few page-views, so Bully for you.

    If you're not capable of learning anything from BRK and Buffett, at least you can try to cheaply capitalize on their names, right?

  • Report this Comment On May 02, 2014, at 11:58 AM, AnsgarJohn wrote:

    @spinach2 it seems to me you didn't listen to the whole video. He did mention the difference between stock price and Intrinsic Value.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2918988, ~/Articles/ArticleHandler.aspx, 9/3/2015 11:14:48 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Brian Stoffel

Brian Stoffel has been a Fool since 2008, and a financial journalist for the Motley Fool since 2010. He tends to follow the investment strategies of Fool-founder David Gardner, looking for the most innovative companies driving positive change for the future.

Today's Market

updated Moments ago Sponsored by:
DOW 16,541.03 189.65 1.16%
S&P 500 1,972.21 23.35 1.20%
NASD 4,795.02 45.04 0.95%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 10:59 AM
BRK-A $201720.00 Up +2360.00 +1.18%
Berkshire Hathaway… CAPS Rating: ****
BRK-B $133.53 Up +1.31 +0.99%
Berkshire Hathaway CAPS Rating: *****