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.

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