Business Insider: “Berkshire Hathaway investors should diversify into tech after decades of the sector outperforming Warren Buffett’s conglomerate, DataTrek says”
By datatrekresearch in IN THE NEWS
Excerpt from Business Insider quoting DataTrek co-founder Nick Colas:
.... "Over the past two decades, tech stocks have significantly outperformed Warren Buffett's conglomerate, and that's one reason why Berkshire investors should diversify their portfolio exposure into large cap tech, according to a Monday note from DataTrek Research...
Compared against the SPDR S&P 500 Technology ETF, Berkshire Hathaway stock has underperformed tech stocks over the past five-, ten-, fifteen-, and twenty- years by 58, 188, 239, and 275 percentage points, respectively, according to DataTrek.
"As for why an index fund like XLK should be able to reliably beat Warren Buffett over long-term holding periods, we think it is simply because this is not a fair comparison," DataTrek co-founder Nicholas Colas said.
"The tech sector has tens of thousands of talented engineers and business people, all looking to create and leverage the next big idea(s). Buffett is an amazing investor – maybe the best ever. But there is an understandable difference in long run returns between those who create the future and those who invest primarily in older-line industries," Colas said"....
Read the full article here on Business Insider!
