Berkshire Hathaway investors should diversify into tech stocks: DataTrek

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Berkshire Hathaway investors should diversify into tech after decades of the sector outperforming Warren Buffett's conglomerate, DataTrek says

investment has not made up for all of the underperformance Berkshire Hathaway has experienced relative to tech stocks over the years.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.

"The tech sector has tens of thousands of talented engineers and business people, all looking to create and leverage the next big idea. 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.

"We're not saying every Berkshire shareholder should swap into XLK, but they might want to consider adding US large cap Tech to a portfolio that already includes BRK," Colas said."History says pairing the two assets in a diversified portfolio makes sense."

 

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