March 4, 2019

Warren Buffett's Berkshire may deliver similar future results as an Index Fund

Doug Kass reflects on Warren Buffett's latest letter to Berkshire Hathaway Shareholders via twitter

Some Thoughts On Warren Buffett's Letter to Berkshire Shareholders

* Strong operating results seen, adjusted for the accounting (and loss) from marketable securities

* More flaws became apparent in the company's investing portfolio - as moats in several large positions have been damaged (most notably Kraft Heinz)

* As I did when I appeared at the company's Annual Meeting, I continue to (respectfully) question the investment process at Berkshire (that has, in certain high profile instances, failed to identify the loss of pricing power in a changing and more competitive business landscape)

* 2018 uncovered more evidence that Berkshire Hathaway has become so large that, going forward, it will continue to resemble an S&P Index Fund