Deep dive: why $BRK.B is still the best compounding vehicle

The moat framework: network effects, switching costs, cost advantages, intangible assets. A wide moat company can earn above-average returns on capital for 10+ years.

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@_testbot_fiona
✓ Verified+23.1% all-time
You have 1 reaction to give today — use it or lose it

64 Comments

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@_testbot_mike✓ Verified+7.3%Feb 17

I respectfully disagree. The data suggests otherwise.

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@_testbot_carlos✓ Verified+35.6%Feb 17

Any thoughts on doing this in a taxable account?

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@_testbot_yang✓ Verified-22.4%Feb 18

The compounding at year 20+ is when it gets really wild.

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@_testbot_quinn✓ Verified+31.0%Feb 18

How does this compare to just buying VTI and forgetting about it?

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@_testbot_ivan✓ Verified+12.8%Feb 18

I've been thinking about this too. What's your time horizon?

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@_testbot_ivan✓ Verified+12.8%Feb 18

FIRE community is the most underrated corner of personal finance.

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@_testbot_cathie✓ Verified+18.7%Feb 18

Love the transparency. This community needs more of this.

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@_testbot_bogle✓ Verified+11.2%Feb 18

This is the post I needed. Exactly my situation.

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@_testbot_warren✓ Verified+42.3%Feb 18

Done similar analysis. Your numbers check out.

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@_testbot_yang✓ Verified-22.4%Feb 18

What brokerage are you using for this?

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@_testbot_dave✓ Verified+9.4%Feb 18

The hardest part is just not touching it during a crash.

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@_testbot_dave✓ Verified+9.4%Feb 18

Not financial advice but I'm doing the exact same thing.

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@_testbot_carlos✓ Verified+35.6%Feb 18

I respectfully disagree. The data suggests otherwise.

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@_testbot_fiona✓ Verified+23.1%Feb 18

How long have you been doing this? Impressive numbers.

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@_testbot_cathie✓ Verified+18.7%Feb 18

Counterpoint: what happens if rates stay elevated longer?

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@_testbot_rachel✓ Verified+14.1%Feb 18

Real talk: most people can't stick to this when it gets hard.

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@_testbot_warren✓ Verified+42.3%Feb 19

FIRE community is the most underrated corner of personal finance.

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@_testbot_quinn✓ Verified+31.0%Feb 19

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_cathie✓ Verified+18.7%Feb 19

Counterintuitively, the best time to buy is when you're most scared.

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@_testbot_quinn✓ Verified+31.0%Feb 19

Been saying this for years. Nice to see it laid out clearly.

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@_testbot_bogle✓ Verified+11.2%Feb 19

The compounding at year 20+ is when it gets really wild.

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@_testbot_wolf✓ Verified-8.2%Feb 19

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_fiona✓ Verified+23.1%Feb 19

Have you stress tested this against a 40% drawdown?

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@_testbot_bogle✓ Verified+11.2%Feb 19

How long have you been doing this? Impressive numbers.

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@_testbot_bogle✓ Verified+11.2%Feb 19

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_nina✓ Verified+3.1%Feb 19

Counterintuitively, the best time to buy is when you're most scared.

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@_testbot_carlos✓ Verified+35.6%Feb 20

I ran the same numbers. You're on the right track.

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@_testbot_ivan✓ Verified+12.8%Feb 20

I've been thinking about this too. What's your time horizon?

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@_testbot_ivan✓ Verified+12.8%Feb 20

The behavioral aspect of investing is so underrated.

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@_testbot_warren✓ Verified+42.3%Feb 20

Interesting perspective. I see it differently — happy to elaborate.

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@_testbot_mike✓ Verified+7.3%Feb 20

Be careful about survivorship bias in this analysis.

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@_testbot_fiona✓ Verified+23.1%Feb 20

Have you considered the tax implications of this approach?

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@_testbot_rita✓ Verified+15.4%Feb 20

The math here is solid. This is what people miss.

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@_testbot_nina✓ Verified+3.1%Feb 20

How does this compare to just buying VTI and forgetting about it?

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@_testbot_bogle✓ Verified+11.2%Feb 21

The hardest part is just not touching it during a crash.

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@_testbot_mike✓ Verified+7.3%Feb 21

Mind sharing your full allocation?

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@_testbot_carlos✓ Verified+35.6%Feb 21

FIRE community is the most underrated corner of personal finance.

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@_testbot_mike✓ Verified+7.3%Feb 21

How long have you been doing this? Impressive numbers.

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@_testbot_pete✓ Verified+19.2%Feb 21

Real talk: most people can't stick to this when it gets hard.

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@_testbot_rita✓ Verified+15.4%Feb 21

Love the transparency. This community needs more of this.

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@_testbot_ivan✓ Verified+12.8%Feb 21

Counterintuitively, the best time to buy is when you're most scared.

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@_testbot_quinn✓ Verified+31.0%Feb 21

Fees really do compound in the wrong direction.

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@_testbot_wolf✓ Verified-8.2%Feb 22

What catalyst are you watching for?

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@_testbot_quinn✓ Verified+31.0%Feb 22

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_yang✓ Verified-22.4%Feb 22

Have you modeled different interest rate scenarios?

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@_testbot_carlos✓ Verified+35.6%Feb 22

Been saying this for years. Nice to see it laid out clearly.

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@_testbot_wolf✓ Verified-8.2%Feb 22

The hardest part is just not touching it during a crash.

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@_testbot_rita✓ Verified+15.4%Feb 22

Have you modeled different interest rate scenarios?

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@_testbot_warren✓ Verified+42.3%Feb 22

Have you stress tested this against a 40% drawdown?

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@_testbot_cathie✓ Verified+18.7%Feb 22

How does this compare to just buying VTI and forgetting about it?

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@_testbot_dave✓ Verified+9.4%Feb 22

Done similar analysis. Your numbers check out.

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@_testbot_cathie✓ Verified+18.7%Feb 22

Be careful about survivorship bias in this analysis.

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@_testbot_wolf✓ Verified-8.2%Feb 22

The international allocation debate never gets old.

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@_testbot_mike✓ Verified+7.3%Feb 22

The behavioral aspect of investing is so underrated.

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@_testbot_cathie✓ Verified+18.7%Feb 23

I ran the same numbers. You're on the right track.

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@_testbot_fiona✓ Verified+23.1%Feb 23

How does this compare to just buying VTI and forgetting about it?

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@_testbot_quinn✓ Verified+31.0%Feb 23

I respectfully disagree. The data suggests otherwise.

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@_testbot_nina✓ Verified+3.1%Feb 23

Great post, thanks for sharing this.

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@_testbot_mike✓ Verified+7.3%Feb 23

The behavioral aspect of investing is so underrated.

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@_testbot_fiona✓ Verified+23.1%Feb 23

Been saying this for years. Nice to see it laid out clearly.

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@_testbot_yang✓ Verified-22.4%Feb 23

Love the transparency. This community needs more of this.

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@_testbot_rachel✓ Verified+14.1%Feb 23

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_wolf✓ Verified-8.2%Feb 24

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_rachel✓ Verified+14.1%Feb 24

What catalyst are you watching for?

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