Author Archives: Kenrapoza

For the 55 calendar years from 1965 through 2019, Berkshire Hathaway’s stock rose at an 18.6% annualized pace, versus 11.8% for the S&P 500 SPX, -1.15%  . (Both returns reflect reinvested dividends.) Warren Buffett can take credit for this, and he appears to be very much in charge of Berkshire. But, given that he just celebrated his 90th birthday, it’s clear that Buffett won’t be at the helm forever. But if you invest in Berkshire B, -6.09% BRK.B, -2.37%  or by following Buffett’s well-known investing principles, your portfolio returns likely won’t suffer after Buffett stops analyzing the markets and offering his insights. How can I be so certain? Because some years ago a group of researchers broke the Buffett Code. They devised a mechanical investing strategy that would have done every bit as well as Buffett over the long term. It is testament to Buffett’s accomplishments that it took many…

Read more

Dear emerging markets fund manager: If you think the trade war is ending this year, I want my money back. China is returning to its subsidy playbook and plans on subsidizing companies hit by tariffs. The latest recipient is tech companies, according to an article in the South China Morning Post on Friday. State subsidies to favored industries were a key issue in trade negotiations. China has no interest in rolling them back. They’re not even signaling a willingness to try. Any Memorial Day happy talk tweets by Trump over the weekend should be glossed over and ignored. We are in a “no deal” situation now. What makes it worse is the fact that Washington is throwing everything plus the kitchen sink at Beijing. Here’s a list of anti-China measures coming from Democrats and Republicans. Some of them are old, but are being resuscitated as the trade war heats up. Expanding the list of Chinese companies on…

Read more

2/2