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And when Buffet and Munger do fall off the perch - Berkshire makes up quite a large % of the S&P 500.... you think they are going to keep compounding their growth at the rate they have been for the last 50 years with non-oracle type chiefs in charge...?
Like it or not those 2 men do have an impact on our existence. At least our investments anyway.*
Off topic, but the thought occurred to me .... A proportion of Berkshire's value is in the investments it holds. Your S&P 500 index fund therefore holds index weights PLUS additional holdings in selected index constituents that Berkshire also holds, therefore doubling up on those companies.
A little quirk in the system there... over here our index excludes listed investment companies for this reason, but I guess Berkshire isn't your typical listed investment company.
*A little edit - Sorry Retire Canada - I think I've quoted you out of context there. Apologies.
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marty998,
When Buffett and Munger fall off the perch, I don't think their successor(s) will be able to maintain the growth rate of the earlier years of Berkshire Hathaway. Of course, Buffett and Munger haven't been able to maintain their earlier growth rates, either. When Berkshire Hathaway was small, a brilliant deal by Buffett added significantly to its bottom line. Now, even a huge deal makes very little difference. In this respect, I think BH has changed fundamentally.
I'm all about index funds, but if when Buffet passes away, if the price drops enough to make it a bargain, I will strongly consider buying (B shares, of course). Buffett and Munger have assembled an incredible cash generating machine on the foundation of BH's core insurance companies (although not the growth machine it once was). That isn't going to change instantly just because Buffett passes away.