Is Berkshire Hathaway Stock a Better Buy Than an S&P 500 Index Fund?
Both options are rooted in the same basic buy-and-hold philosophy, but one differs from the other in one way that's very important for the foreseeable future.
Overview
Experienced investors know the advantages of buying and holding S&P 500 index funds like the Vanguard S&P 500 ETF (NYSEMKT: VOO) or the SPDR S&P 500 ETF Trust (NYSEMKT: SPY). Not only are they super simple, but statistically speaking, you're likely to get better performance from them than you are by picking individual stocks or by owning an actively managed fund.
Nevertheless, given its long-term (and often market-beating) track record, even the most disciplined of investors might have the itch to step into a stake in Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB). But is it actually the better buy?
Details
Berkshire Hathaway is a conglomerate consisting of several dozen reliable cash-producing businesses as well as a portfolio of hand-picked stocks. Brought to prominence by Warren Buffett, the company's flexible structure has enabled its shares to consistently outperform the S&P 500 since Buffett first took the helm in 1965.
Source
Originally published at www.fool.com.