No Load vs. Load

Yeah, but VA49er didn't buy any berkshire hathaway.

 

too bad for him... :banginghe

 

Comparing an actively managed fund to an index is one way to look at it. Index funds aren't free...but they are ridiculously cheap because you do not have to pay a portfolio management team to pick stocks. Even if the Actively managed fund matches the index year for year (and like you said, it won't happen) you still lose in the long run because the overall management fees will eat into your returns. But then you have the taxability of active funds vs index funds. an index funds will be much more tax efficient than and active fund so if the money is taxable, realized gain and dividend distributions will result in tax consequences that will also erode returns.

If i am comparing and active fund to an active fund, i lean towards no load funds. Over a long period of time (10 years or more), the active funds will charge about the same amount in fees regardless if they are loaded or not. but i have two fundamental issues with loaded funds:

1. I hate the idea of starting in the hole. After taking out 4% on the front end, you have to return about 4.17% just to get back to even.
2. I am not going to pay an 'advisor' a commission when i do the research on the fund(s) myself.

I use Index funds in my overall portfolio. However, i supplement them with specialty no-load funds that have been solid over a long period of time to fully diversify my portfolio.

 

ditto

 

I just hold some B shares. I'm waiting for the A shares to split.

 

I don't think that'll ever happen, will it? Isn't Buffet opposed to splitting it?

 

Yep, hence the reason "A" shares are $96,400/share as of this morning. Hell, the "B" shares are over $3,000/share.

He refuses to split Berkshire Hathaway stock because the purpose of this would be to facilitate trading, which he has no desire to do. He has stated that he sees his fellow Berkshire Hathaway investors as partners and hopes that they take their investment likewise, as a long-term or lifelong investment and he discourages those with a short-term view from investing in Berkshire Hathaway.