2 Good Reasons to Avoid Warren Buffett's Berkshire Hathaway

As we count down the days until the annual shareholders meeting, here are two broad arguments against owning shares.

May 1, 2014 at 7:30AM

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

Brian Stoffel owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was rated #1 in the world by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations moments ago. Together, they've tripled the stock market's return over 12+ years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Click here to be among the first people to hear about David and Tom's newest stock recommendations.

*"Look Who's on Top Now" appeared in The Wall Street Journal which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.

Compare Brokers