Which Will Perform Better: Berkshire Hathaway or Utility Stocks?

Which Will Perform Better: Berkshire Hathaway or Utility Stocks?

Berkshire Hathaway doesn't pay a dividend, its cash pile keeps growing, and Buffet says it's gotten too big to make acquisitions that can impact the company. Meanwhile, utility ETFs have a steady 3.5% dividend yield. Which will be the better-performing investment going forward?

Topics covered include:

  • How has Berkshire Hathaway performed relative to the S&P 500 Index and other active managers
  • Why Warren Buffett believes Berkshire's electric utility holdings were a mistake
  • Why California has some of the highest utility rates in the U.S.
  • Why Berkshire Hathaway will eventually need to pay a dividend even though it doesn't currently
  • Going forward, will it be more profitable to invest in Berkshire Hathaway, a utility ETF, or an index fund


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Show Notes

Berkshire Hathaway 2023 Shareholder Letter

The Man Preparing for a Berkshire Hathaway Without Warren Buffett by Justin Baer—The Wall Street Journal

Warren Buffett admits Berkshire Hathaway’s days of ‘eye-popping’ gains are over by Eric Platt—The Financial Times

Active vs Passive Investment Management Barometer Report—Morningstar

Buffett sounds wildfire alarm as utilities industry enters new era by Eric Platt and Myles McCormick—The Financial Times

Paying for Electricity in California: How Residential Rate Design Impacts Equity and Electrification—Next10

Investments Mentioned

Berkshire Hathaway Inc Class B (BRK.B)

Vanguard Utilities ETF (VPU)

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