Our comments BRK annual meeting, May 4, 2019

For a summary of the 2019 Berkshire Hathaway (BRK) Annual Shareholders’ Meeting see our report.

Called the Woodstock of capitalism, the annual BRK meeting attracts tens of thousands even though getting to Omaha is a major aggravation for many, hotel prices are at their highest, hotels require a four-day booking for the one-day meeting and the meeting has been broadcast live for several years now! Investors can follow it without needing to go there.

For Monday Morning Millionaire Program members, it is noteworthy to see that over the past decade, Berkshire stock has gone up 259% while the S&P 500 has gone up 314%! Over the last 10 years, by investing an exchange-traded fund which parallels the S&P 500, we have outperformed two of the best investment minds in history!  (Over the last five decades, BRK has done impressively better.)

Why is that? Why is the Monday Morning Millionaire Program outperforming Berkshire Hathaway?

BRK is one of the world’s largest enterprises. (Ten of the world’s biggest companies are American.) Like a large ocean liner, it cannot turn on a dime. Buffett and Munger have been stating for years now, that it is becoming increasingly difficult for BRK to perform well because of its increasing size. Monday Morning Millionaire Program members will not have that problem.

Buffet and Munger have said that the day will come when BRK performance will not equal the S&P 500 performance. It is well known that Buffett wants 90% of his estate invested in an index fund which matches the S&P 500 and the remaining 10% invested in Government bonds. How like the philosophy of the Monday Morning Millionaire Program! (Except for the fact that the Monday Morning Millionaire Program recommends money markets instead of bonds.)

Like the Monday Morning Millionaire Program, Buffett and Munger enthusiastically promote investing in the US because of its economic dynamism, ingenuity, and ambition.

The odds of beating the S&P 500 over the course of a market cycle (peak to trough to peak) are much closer to 0% than they are to 10%.  Equalling the index following the Monday Morning Millionaire Program philosophy minus a small transaction fee is a certainty.

Investing successfully in the short run requires luck. Investing successfully over the long run following the Monday Morning Millionaire Program is guaranteed.

Good luck to us all.

Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me

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