Beating Warren Buffett--Part 3
How the Buffett Analysis Came About from
A Timely Review of Worldwide ETFs'
Performance Results
COPERNICUS BEATS BUFFETT
Note what an immense difference a new start date makes! The previous chart covered 24 years. This chart below only eight. Why? The Copernican ETFs systems begin with the earliest history available to build on. In this case, the year is 2002.
Reasons for the Difference. Berkshire Hathaway holds three dozen or so individual U.S. companies (36 of them, as of last March, 3/31/2010). Its top three holdings totaled 53% of portfolio value. It tends to buy and hold, sometimes forever.
Worldwide ETFs system portfolio uses 23 widely diversified, yet sharply focused indexes from around the world. These 23 funds hold thousands of stocks. The system moves in and out of these funds, sometimes rapidly. It decides which are the best to buy and sell, if any. It calculates the apparent trend of the market (S&P 500) to determine the buy/sell decision. Its top-three capitalization holdings contain 2,185 individual stocks currently.
The contrast could not more vigorously express the diametric differences in policy, strategy, and tactics of investment management. You can consider these two portfolios as prime exemplars of value versus growth investing and fundamental versus technical analysis. Neither is 'right' nor 'wrong'. The fault or virtue of either lies in the personality of the person using it. Plus a good dose of luck.
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Chart
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Worldwide ETFs System vs Berkshire Hathaway, Inc.
& S&P 500 Large Cap U.S. Equities Index
December 27, 2002--December 31, 2010
8 years • Weekly
Prices Indexed to 100%
Worldwide ETFs Hypothetical
Berkshire and S&P500 Are Actual
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