Key insights
- The author discusses their value investing portfolio consisting of BRK.B, MKL, FRFHF, and WTM. Recent earnings disappointments in MKL and FRFHF, coupled with concerns about BRK.B's upcoming earnings due to rising input costs, have led to portfolio underperformance. The author is considering whether to abandon the value strategy and switch to an ETF.
About a year ago I decided to setup a brokerage account. My retirement and my kid's 529 are all in all-market target date funds. The brokerage account, however, I decided to try my hand at value investing.
I have 4 value positions currently:
BRK.B Berkshire Hathaway , P/E 15.3, P/B 1.42 , position -4%
MKL Markel , P/E 12.77, P/B 1.2 , position -2.4%
FRFHF Fairfax , P/E 8.55 , P/B 1.4 , +2%
WTM White Mountain Insurance , P/E 5.16, P/B 0.95 , position +21%
Both MKL and FRFHF had crap earnings this week and dumped. BRK.B releases earnings this weekend and I'm not very optimistic given the ceo told CNBC today their input costs rose from the war and they weren't able to re-price products immediately so they just ate the cost (interview on CNBC YouTube page). WTM earnings are next week but it's already started dropping like MKL and FRFHF did pre-earnings as if insiders are selling.
Question is, what would you do with these positions? Give up and stick it in an ETF? Hold them and stop checking my balance?
My overall portfolio doubled the S&P500 last year because I gambled on drones and nuclear speculative stocks. But my value plays on average are underperforming.