The following chart shows the difference between BRKA and QQQ. It instantly explains why BRKA has for the past 20 years struggled to match let alone beat the broader market.
The major drivers of the past two decades have been technology stocks – this is shown by the following table which shows the top 20 ten-year percentage change in US large-cap stocks.
As can be seen, the list is littered with technology issues. Having a methodology that relies upon narrative rather than data means that if your narrative does not include this market segment or have an understanding of it then these opportunities will pass you by.
