2026-01-02 13:16:18

Here's the investing puzzle nobody talks about enough. Buffett tells everyday investors to buy index funds—solid advice, right? But think about it differently. What if you didn't have to choose? What if your portfolio included Berkshire Hathaway shares alongside index fund positions?

The numbers tell an interesting story. Berkshire has compounded at 19.9% historically. That's significantly ahead of what broad market indices typically deliver. So the real question becomes: why would you settle for average market returns when you could own a concentrated position in a proven compounder plus maintain your diversified index exposure?

It's not about picking stocks over index funds—it's about strategic layering. Different investors, different risk tolerances, different time horizons. The index fund argument works. The Berkshire approach works too. But combining both? That's where the conversation gets interesting for those willing to do the homework.

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NotSatoshi

· 2h ago

There's no need to choose one or the other; a combination of BRK+ index funds is actually the way to go... Anyway, idle money is meant to be tinkered with. --- A 19.9% compound return is indeed impressive, but that's also why most people still buy index funds — a steady mindset. --- Warren Buffett's theories are fine, but if you actually follow his advice, you might not make money — isn't that ironic? --- Strategic layering sounds fancy, but it's just about not putting all your eggs in one basket, a well-known principle. --- The problem is most people are too lazy to do their homework and still think they can earn 19.9% by luck. --- BRK has outperformed the market for many years, but can it be replicated now? That's the key. --- Forget it, I'll just stick to regular index investing to avoid overthinking and getting cut.

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MelonField

· 2h ago

Even Buffett himself has a concentrated position. Letting retail investors buy index funds is just a way to level the playing field, haha.

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ThatsNotARugPull

· 2h ago

NGL, this statement sounds pretty good, but it still feels a bit too good to be true... A 19.9% historical return is indeed impressive, but the past doesn't guarantee the future, brother.

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PortfolioAlert

· 2h ago

A 19.9% compound return is indeed attractive, but the key still depends on individual risk tolerance—not everyone can handle the volatility.

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0xDreamChaser

· 2h ago

A 19.9% compound return is indeed impressive, but how many truly dare to go all in on Berkshire Hathaway? A layered allocation is still more reliable.

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PhantomHunter

· 3h ago

19.9% vs market average, this gap is indeed significant... but on the other hand, how many can consistently outperform the index?

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LonelyAnchorman

· 3h ago

Even Buffett himself is accumulating Berkshire Hathaway, so why should retail investors only buy index funds...

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