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


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  • 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.

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7/23/2014 4:00 PM
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