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Who's Betting Against Warren Buffett?

By David Hanson and Matt Koppenheffer - Mar 27, 2014 at 7:09AM

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Could small caps outperform Buffett's Berkshire Hathaway over the next decade?

The advice of legendary investor Warren Buffett is revered throughout the investing world, and few would ever bet against him. However, in this segment of Wednesday's Where the Money Is, Motley Fool banking analysts Matt Koppenheffer and David Hanson take a look at one voice calling for small cap stocks, as measured by the Russell 2000 Index (RUSSELLINDICES: ^RUT), to outperform Buffett's Berkshire Hathaway ( BRK.A 0.85% )( BRK.B 1.28% ) stock over the next ten years. Could he be right?

While Matt points out that small caps as a whole have tended to outperform large caps generally, he highlights that the case for small cap outperformance here is anything but clear.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.A
$429,830.00 (0.85%) $3,630.00
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.B
$284.97 (1.28%) $3.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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