Does VOO or VTI invest in Berkshire Hathaway?

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vu8
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Does VOO or VTI invest in Berkshire Hathaway?

Post by vu8 » Tue May 29, 2018 10:17 am

Since Berkshire Hathaway is public, why doesn't VOO invest in BRK.A or BRK.B?

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BeBH65
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Re: Does VOO or VTI invest in Berkshire Hathaway?

Post by BeBH65 » Tue May 29, 2018 12:26 pm

Apparantly it is the sixth biggest position in VOO see morningstar
BeBH65. (only an investment enthusiast, not a financial adviser, perform your due diligence).

livesoft
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Re: Does VOO or VTI invest in Berkshire Hathaway?

Post by livesoft » Tue May 29, 2018 12:29 pm

vu8 wrote:
Tue May 29, 2018 10:17 am
Since Berkshire Hathaway is public, why doesn't VOO invest in BRK.A or BRK.B?
Welcome to the forum. Why do you say that?
Wiki This signature message sponsored by sscritic: Learn to fish.

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JoMoney
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Re: Does VOO or VTI invest in Berkshire Hathaway?

Post by JoMoney » Tue May 29, 2018 12:52 pm

OP, your post is organized in a way I find bizarre. You ask a question in the subject line, then in the body of your message make a statement that would be an answer to the question in your own subject line, except it's a falsehood since BRK is a stock held by both VOO and VTI.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

22twain
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Re: Does VOO or VTI invest in Berkshire Hathaway?

Post by 22twain » Tue May 29, 2018 12:53 pm

BeBH65 wrote:
Tue May 29, 2018 12:26 pm
Apparantly it is the sixth biggest position in VOO see morningstar
And the seventh biggest in VTI, at 1.33%.
My investing princiPLEs do not include absolutely preserving princiPAL.

ThrustVectoring
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Re: Does VOO or VTI invest in Berkshire Hathaway?

Post by ThrustVectoring » Tue May 29, 2018 1:48 pm

22twain wrote:
Tue May 29, 2018 12:53 pm
BeBH65 wrote:
Tue May 29, 2018 12:26 pm
Apparantly it is the sixth biggest position in VOO see morningstar
And the seventh biggest in VTI, at 1.33%.
It really should be the seventh biggest position for both funds - VOO apparently lists Alphabet class A and class C shares as separate "positions".
Current portfolio: 60% VTI / 40% VXUS

inbox788
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Re: Does VOO or VTI invest in Berkshire Hathaway?

Post by inbox788 » Tue May 29, 2018 2:32 pm

ThrustVectoring wrote:
Tue May 29, 2018 1:48 pm
22twain wrote:
Tue May 29, 2018 12:53 pm
BeBH65 wrote:
Tue May 29, 2018 12:26 pm
Apparantly it is the sixth biggest position in VOO see morningstar
And the seventh biggest in VTI, at 1.33%.
It really should be the seventh biggest position for both funds - VOO apparently lists Alphabet class A and class C shares as separate "positions".
BRK.B and JPM are neck and neck. It's only that JPM has gone up and BRK has gone down that BRK isn't in sixth place. And if you include the A shares, depending on the day or hour, it might be enough to tip the order.

[Berkshire Hathaway Inc. Class A around #398 in VTI] https://investor.vanguard.com/etf/profi ... o-holdings [I hate these stupid new interfaces at Google Finance, Vanguard and others that are annoying and limiting; change not always good]

FWIW, according to Google Finance (also similar at Yahoo Finance). Why the ~$100B discrepancy?
JPM Mkt cap 358.22B
BRK.B Mkt cap 468.89B

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JoMoney
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Re: Does VOO or VTI invest in Berkshire Hathaway?

Post by JoMoney » Tue May 29, 2018 2:39 pm

The 'Total Market' has always included BRK, when BRK created the 'B' shares and used them to buy BNSF in 2010 it was added to the S&P 500.
The 'A' shares had too little volume and weren't liquid enough to meet the constituency requirements of the S&P 500 index.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

TheAncientOne
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Re: Does VOO or VTI invest in Berkshire Hathaway?

Post by TheAncientOne » Tue May 29, 2018 3:16 pm

JoMoney, the B shares were created in the 1990s, well before the BNSF acquisition. However that acquisition led to the issuance of far more B shares, making those shares eligible for inclusion in the S&P 500 index.

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David Jay
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Re: Does VOO or VTI invest in Berkshire Hathaway?

Post by David Jay » Tue May 29, 2018 3:30 pm

vu8 - Welcome to the forum.

Did you get your question answered? Did you have any follow-up questions?

I think you will find that questions seeking understanding will be well received here. Making statements that are incorrect will typically result in corrections. I don't believe that individuals are trying to be harsh, but this is definitely a fact-based community.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

columbia
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Re: Does VOO or VTI invest in Berkshire Hathaway?

Post by columbia » Tue May 29, 2018 3:31 pm

I guess we now know the reason Buffett recommends the SP500:

No one can afford the shares listed in TSM.

;)

NoHeat
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Re: Does VOO or VTI invest in Berkshire Hathaway?

Post by NoHeat » Tue May 29, 2018 9:21 pm

vu8 wrote:
Tue May 29, 2018 10:17 am
Since Berkshire Hathaway is public, why doesn't VOO invest in BRK.A or BRK.B?
There was indeed a time, until about 8 years ago, that index funds indeed did not own Bershire Hathaway. So your statement is true, but just a bit out of date.

And to answer your question of why — that was because the index excluded illiquid stocks.

At one time there was only the super-expensive A share, which rarely traded, and Warren liked it that way. Then, the B class was created, and it was later split to accommodate the BNSF railroad acquisition. With that, the stock became very liquid, and the index picked up the name.

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