In an interview earlier this year with The Omaha YouTube Channel, Guy Spier discussed why he continues to own Berkshire Hathaway. Here’s an excerpt from the interview:
Spier: In the case of Berkshire Hathaway you’ve got to assume that the day you buy it Warren Buffett is no longer around. But the businesses that are in there, even if they don’t own Amazon and they don’t own Salesforce.com, and various other cloud and other businesses that are thriving in this time, they have plenty of great businesses that will do absolutely fine.
You can be very… we can be very confident that the people at the top allocating capital even after Warren Buffett is gone are going to do a decent job of it, and so what’s the likelihood that it turns out a return that is somewhat better than the S&P? It’s a very very good chance, and you have to put the money somewhere.
I would say that more and more… I realize that like I don’t lose sleep over my Berkshire Hathaway position and I in a certain way actually I’m coming to the… I mean Warren Buffett said that he can’t guarantee that he’ll exceed the S&P over the next 10 years, if I’m not mistaken from the annual meeting this time around.
But would you rather be in the S&P and have maybe some more volatility or have more worries or would you rather be in Berkshire Hathaway and sleep better at night and have less worries or know that it’s counter-cyclical but when the right moment comes they’ll be able to deploy a lot of capital.
You can watch the entire interview here:
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