In today’s Daily Journal, Porter further explains the details of the portfolio he assembled called “Better Than Berkshire,” which mimics the holdings of Warren Buffett’s Berkshire Hathaway, but uses publicly traded companies as replacement for what Berkshire holds.
In today’s Daily Journal, Porter attempts to build a portfolio that’s based on the structure and asset allocation of Berkshire Hathaway’s, but that’s only made up of world-class businesses that, when measured objectively, are better than their Berkshire analogs.
Most people believe they must take risks and take on leverage and do all other kinds of financial wizardry because they’re not as smart as Warren Buffett. But that’s all nonsense. All you must do is buy the biggest and best businesses, in the best industries. That’s all. It’s obvious. And it’s easy.
Berkshire Hathaway’s structure guaranteed investment success while Warren Buffett’s personal reputation made investing respectable. The combination showed, beyond any doubt, that capitalism was more effective than socialism. But since the Global Financial Crisis, Berkshire’s track record has been abysmal.
If you want to become a great investor, learn from two of Warren Buffett’s purchases – his worst and his best. Porter takes readers through the history and numbers of both.
Warren Buffett has long warned that the growing size of his portfolio must, inevitably, begin to negatively impact his returns on invested capital. And that’s certainly occurring – though for reasons that are not obvious to most investors, Porter explains.
There has never been a more powerful consumer brand that is more beloved than Coke. And it’s been a great investment… $40 invested in 1919 would have turned into more than $600,000 by now. In today’s issue, Porter explains why…
One of the largest and wealthiest communities in the U.S. has been largely destroyed, with over 15,000 structures burned across 63 square miles, an area roughly the size of Washington, D.C. In today’s Daily Journal, Porter examines how this disaster plays out across the property-and-casualty insurance industry.
This company became Warren Buffett’s playbook for Berkshire Hathaway. Acquire the asset at a large discount to net asset value, borrow against those assets, use the losses from the legacy business to offset gains from new acquisitions, liquidate the legacy business… and profit massively as the new company grows.