While many mutual funds and ETFs limit themselves to a particular area, this is not Warren Buffett’s approach. He wants the maximum flexibility to take advantage of opportunities, and he also doesn’t want to be forced to do any particular thing.
“I would say that we think the most logical fund is the one we have at Berkshire where, essentially, we can do anything that makes sense and are not compelled to do anything that we don’t think makes sense,” Warren Buffett said at the 2007 Berkshire Hathaway Annual Meeting. “So any entity that is devoted to a limited segment of the financial market we would regard as being at a disadvantage to one that has total authority if you have the right person in charge… So we would not want to devote our funds to something that was only going to buy bonds, something that was only going to buy futures, or anything of the sort.”
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© 2022 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.