Warren Buffett's Berkshire Hathaway should scale back its passive investment in the S&P 500 (^GSPC) and plow it right back into Berkshire stock (BRK-A, BRK-B). That's because the environment for stock picking is ripe for a shift away from passive investing, which could suffer a decade of low or nonexistent returns.
"This is the single worst time to be a passive investor in since they started passive investments... The [S&P 500] index is highly likely to not make money over the next 10 years," said Bill Smead, chief investment officer of Smead Capital Management"
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