Buffett and Berkshire Are Right to Sit on Their Cash

Wedgewood Partners' chief investment officer David Rolfe has a point -- Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) has mostly underperformed the broad market since the beginning of this bull market back in early 2009. As of the most recent look, the S&P 500 is up 338% from the March 2009 bottom, while Berkshire's shares are only up 328%.

Things are getting worse rather than better, too. The S&P 500 is up more than 19% year to date, while Berkshire's shares have mustered an almost meaningless 2.3%. The fund's Kraft Heinz (NASDAQ: KHC) position has soured, falling nearly 35% since the end of 2018, though the fact that more than half the fund was sidelined as idle cash at the midpoint of the year hasn't helped performance much either.

But for Rolfe to cash out Wedgewood's long-held Berkshire Hathaway position because "Thumb-sucking has not cut the Heinz mustard during the Great Bull Market" looks right past everything Warren Buffett has learned about the stock market during his 78 years as in investor.

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Source Fool.com