Berkshire Hathaway: A Trader’s Take on Five Years of Stock Shenanigans

Let me tell you something about artificial intelligence, Nvidia, Palantir-all these shiny tech darlings that have been hogging the spotlight for years now. It’s like everyone decided they’re the cool kids at some high school reunion where nobody remembers what algebra even *is*. But here’s the thing no one talks about because apparently it’s gauche to mention: Warren Buffett didn’t get invited to this party, and yet he still managed to crash it with his boring old Berkshire Hathaway stock [BRK.A] [BRK.B]. Why does no one care about how maddeningly consistent value investing can be?

Back in Fighting Form (Sort Of)

If you had put $1,000 into Berkshire Hathaway back in August 2020-just a casual four-digit bet on an octogenarian billionaire who doesn’t text or tweet-you’d be sitting pretty with $2,221 today. That’s an annualized growth rate of 17.3%. Meanwhile, the S&P 500 (^GSPC), which everyone loves to fawn over like it’s their favorite sitcom rerun, only grew by 13.8% annually without dividends reinvested. Add those dividends? Still lags behind Berkshire. And let me just say, if I hear one more person bragging about their index fund like it’s a golden retriever winning Best in Show, I might scream.

Now here’s the kicker-it wasn’t smooth sailing the whole time. Oh no, not for poor Berkshire. In May, Buffett announces he’s retiring, and suddenly investors start dumping defensive value stocks faster than you can say “sell-off.” Defensive! As if holding Coca-Cola and American Express is somehow less exciting than betting your life savings on crypto tokens named after memes. Do people not realize there are rules to this game? You don’t abandon ship just because someone says they’re stepping down from steering it!

But wait, there’s vindication too. Remember when everyone was questioning Buffett’s methods? Like, why isn’t he chasing Tesla or whatever else Elon Musk tweets about while eating pancakes at 3 a.m.? Turns out patience actually works. Who knew?

Quality Over Hype: A Lesson Nobody Listens To

Look, I’m not saying Berkshire will never lag again. Of course it will. When the next big thing comes along-quantum computing, brain implants, whatever-they’ll all flock to it like seagulls to a dropped bag of chips. And Buffett’s style will look dull once more. But here’s the deal: quality businesses don’t stop being quality just because everyone else has ADHD when it comes to investing.

Take my advice-or don’t, I’m just a trader yelling into the void-but remember this moment the next time someone tries to convince you to chase the latest fad. Because honestly, if you can stomach the rough patches, you’ll end up thanking yourself later. Unless, of course, you’re too busy trying to figure out whether “buy now” means commit or cancel. Seriously, who designs these buttons? 😤

Read More

2025-08-12 20:57