Key insights
- The article questions Warren Buffett's alleged recommendation for his wife to invest 90% in the S&P 500 and 10% in short-term government bonds, rather than Berkshire Hathaway (BRK). This is interpreted as a potential tacit admission that BRK may not outperform the S&P 500 going forward, despite Buffett's view on market overvaluation and Berkshire's cash reserves for potential acquisitions during downturns. The implication is a potentially bearish signal for BRK relative to the broader market.
to his wife.
It’s been posted before (in comments section - not thread topic) that Warren recommends his wife/widow (upon getting inheritance after her passing) put 90% of her wealth into the S&P 500 and 10% into short-term government bonds (to weather downturns). There‘s an elephant in the room begging the question why not keep it in Berkshire or, at least, some of it in $BRK?
Is that a tacit admission that he doesn’t think Berkshire will beat the S&P 500 going forward? It’s interesting given how he seems to think the market is overvalued and presumably Berkshire can buy up good assets with all that cash it has during any corrections/bear markets. Yet, he still thinks she shouldn‘t hold any Berkshire and go all-in into VOO.
Thoughts?