Friday, August 22, 2014

Top Performing Bank Weighing Down Berkshire Hathaway Returns (WFC; XLF; BRK.b)

From Dragonfly Capital:

Give it All to Warren Buffett
The Financial Select Sector SPDR ETF, $XLF, has had a pretty good year. It started out slow but is now up 13.8% from the low point on February 3rd. Thursday it broke out to new post crisis highs. With the S&P 500 up 15.60% since that date it has lagged but not by very much. There is always debate about whether the broad market can climb without the financials carrying a significant amount of the weight. So this is good news. But the performance chart below shows that both have lagged as investments when compared to the top two holdings in the XLF, Berkshire Hathaway, $BRK/B, and Wells Fargo, $WFC....MORE