I always wondered why people didn't just own Berkshire or Fairfax Financial if it always beats the market?
Just because Berkshire has beaten the market in the past is no guarantee it will continue to do so in the future. In fact it's a mathematical certainty that Berkshire can't continue to outperform the market indefinitely, because at some point it
becomes the market. As AdrianC has mentioned above, Berkshire's enormous size acts as huge anchor on its ability to grow. It requires an acquisition of company such as BNSF or PCP to barely move the needle, and there aren't many companies of those sizes left in the universe.
That said, at today's prices I think it's likely Berkshire will outperform the market over the next decade. (
NOT a stock recommendation, btw.)
Is it the risk that they will drop through the floor the moment Buffet or Watsa die?
Buffett has been planning for this certain event for at least 30 years. Most people expect the market price to dip briefly when this occurs. His co-chairman, Charlie Munger, has made a statement to the effect that
"I hope none of my heirs will be so stupid as to sell their Berkshire stock."Is there a mutual fund that lets you buy fractions of a Berkshire share?
The 'B' shares were specifically created because some companies were selling (at high commissions) fractions of BRK/A, trading off of Berkshire's reputation. For the retail investor, there's virtually no difference in buying A or B shares.