For a dual US/UK citizen living in the UK, what do you think of creating a retirement portfolio around Berkshire Hathaway? BRK.B is a single stock, is US based and will not be affected by PFIC or HRMC. It's a fairly close proxy to the S&P500 with about 70% correlation and tax efficient. It's probably more concentrated than S&P500, but even S&P500 seemed pretty concentrated these days. S&P500 beating return is not important, but just need something close to S&P500 in return.
Risk-wise I feel that it would be safer than a single stock like Nvidia, but Risker than a broad market index fund or ETF. The risk I see is that we are depending on a single company. It's a really well run company, but there is more of a chance that something will go wrong. One other issue is that BRK is essentially a US company. It has foreign business but is essentially a US proxy. I don't think there is a BRK equivalent for non-US stock?
How would you do fixed income? BRK does hold a lot of bonds, but perhaps 100% BRk is perhaps not a good idea. Would you add some US Treasury or Gilts to the mix for fixed income? Assume that there is an emergency fund in UK pounds already.
Risk-wise I feel that it would be safer than a single stock like Nvidia, but Risker than a broad market index fund or ETF. The risk I see is that we are depending on a single company. It's a really well run company, but there is more of a chance that something will go wrong. One other issue is that BRK is essentially a US company. It has foreign business but is essentially a US proxy. I don't think there is a BRK equivalent for non-US stock?
How would you do fixed income? BRK does hold a lot of bonds, but perhaps 100% BRk is perhaps not a good idea. Would you add some US Treasury or Gilts to the mix for fixed income? Assume that there is an emergency fund in UK pounds already.
Statistics: Posted by gavinsiu — Sun Dec 22, 2024 10:44 am — Replies 2 — Views 113