KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Despite Warren Buffett’s legendary track record, Berkshire Hathaway may struggle to consistently beat the market in the coming years. The company’s sheer size limits its ability to invest in smaller, undervalued companies, making it more aligned with the broader market's performance.
In 2024, Berkshire Hathaway barely outperformed the S&P 500, returning 25.5% vs. 25.0%. Over the past 10 to 30 years, its performance has remained close to the market average. Statistically, it would take over 100 years of continued outperformance to prove that Berkshire’s success isn’t due to luck.
A key focus in its upcoming annual report is its cash reserves, which stood at $325 billion in September 2024. If this number increases, it could signal Buffett’s cautious stance on the market. However, even with his exceptional record, beating the market gets harder as Berkshire continues to grow.
Key Takeaways:
- Berkshire Hathaway’s massive size makes it harder to outperform the market.
- In 2024, it slightly outperformed the S&P 500 (25.5% vs. 25.0%).
- Statistically, it would take 100+ years to confirm its success isn’t just luck.
- Berkshire held $325 billion in cash (as of Sept 2024), raising questions about Buffett’s market outlook.
- Despite Buffett’s history, market-beating performance is no longer guaranteed.
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