IS BUYING BRK BEING DIVERSIFIED?

Posted: 11 Nov 2007 09:52
Registered User Currently Offline	Posts: 1 Join Date: Nov 2007
As a newby to the stock market, I was wondering if I only was to purchase BRK.B, would that be diversified enough. Everybody says to not put all your eggs in one basket, i.e. techs, retail, etc. What do you think. Thanks in advance.

Posted: 16 Nov 2007 01:33
Registered User Currently Offline	Posts: 42 Join Date: Nov 2006
Hi, I'd be a little bit nervous about buying BRK.B and considering my portfolio to be diversified. It's a really tricky balance. Now, if you picked up shares the S&P Depository receipts (see link to Yahoo! Finance quote below) you'd basically be "buying the market" and your returns would be track whatever the S&P does. Your investment returns will never "outperform" the market, but after brokerage commissions and fees, your performance will ALMOST match the exact performance of the market. Let's say 80% of your money is in the S&P thing. The other 20% you can "play" with and see if you can score some really good gains in the market. This is actually a really good topic...