Author Topic: Q1 Results  (Read 2933 times)

Dynamic

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Re: Q1 Results
« Reply #10 on: May 04, 2019, 11:31:18 AM »
Fair enough, but one would expect a fair amount of deviation from the market average in a concentrated portfolio, trailing in some quarters and beating in others.

Berkshire Hathaway has a strong allocation to financials and a very large stake in Apple, for example, so I would expect significant deviation from quarter to quarter.

I wouldn't judge then too harshly on a couple of quarters any more than I'd kick myself for my underperformance in Q1 which I've since almost entirely made up for.

I felt that Apple in particular was priced quite optimistically at 30 September 2018 but it didn't make much sense for Berkshire to sell when it's intending to hold for many years.


Spekulatius

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Re: Q1 Results
« Reply #11 on: May 04, 2019, 11:49:48 AM »
Fair enough, but one would expect a fair amount of deviation from the market average in a concentrated portfolio, trailing in some quarters and beating in others.

Berkshire Hathaway has a strong allocation to financials and a very large stake in Apple, for example, so I would expect significant deviation from quarter to quarter.

I wouldn't judge then too harshly on a couple of quarters any more than I'd kick myself for my underperformance in Q1 which I've since almost entirely made up for.

I felt that Apple in particular was priced quite optimistically at 30 September 2018 but it didn't make much sense for Berkshire to sell when it's intending to hold for many years.

The info was provided for perspective, not criticism. I think in particular WFC and KHC have hurt the equity portfolio.
To be a realist, one has to believe in miracles.

Dynamic

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Re: Q1 Results
« Reply #12 on: May 04, 2019, 12:30:21 PM »
Sorry, I didn't mean to imply criticism. WFC certainly hurt the equity portfolio.

KHC hurt the earnings and book value but isn't accounted for as part of the equity portfolio's unrealised performance as it's accounted under the confusingly named Equity Method.

Dynamic

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Re: Q1 Results
« Reply #13 on: May 07, 2019, 01:16:57 AM »
Incidentally, I was looking at the Look-Through portfolio yesterday. Assuming the portfolio remains as it was last known (including the small reduction in WFC announced in the Q1 results note 4 to stay below 10%), since 31st March 2019, I think it has risen by +7.3% as of 6th May closing prices, versus +6.1% for BRK.B share price and +3.5% for S&P500 (or +3.6% for SP500TR). If you include KHC, the portfolio is up +6.9% from March 31st - May 6th.