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Prediction: Buying Berkshire Hathaway Today Will Set You Up for Life

The Motley Fool

Nearly half of all Berkshire Hathaway's current value is made up of solid-but-small companies you can't directly invest in. In many regards, this largely makes Berkshire a business development company (or BDC ) or a private equity outfit, which often boast market-beating performances. That's outperform the S&P 500.

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Berkshire Hathaway's Beating the Market, But Its Biggest Holdings Aren't. What Gives?

The Motley Fool

It's an often-forgotten detail about Berkshire Hathaway, but it's not a mutual fund. It's a conglomerate that just so happens to use much of its idle cash to hold stocks of publicly traded companies. None of these are companies you can directly invest in on your own. Take Prospect Capital (NASDAQ: PSEC) as an example.