Better Buy: Berkshire Hathaway Stock or the Whole S&P 500?
If you're looking to put money to work for the long run, an index fund can allow you to spread your money out across a portfolio of stocks and at a bare minimum of expense. But there are some stocks that offer this sort of "all-in-one" investment approach, as well.
One great example is Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). This conglomerate, which is led by billionaire investor Warren Buffett, owns a collection of more than 60 subsidiary businesses, including household names like GEICO, Duracell, and Dairy Queen, as well as a massive portfolio of common stocks with a market value of well over $200 billion. I've said before that if I was only allowed to own one stock, Berkshire Hathaway would be it.
With that in mind, is Berkshire Hathaway a better investment than simply buying an S&P 500 index fund like the Vanguard S&P 500 ETF (NYSEMKT: VOO)? Unfortunately, there's not a perfect answer to this question, as there are pros and cons to both choices.
Source Fool.com
