The BHIP Grows Slowly But Steadily

It’s been awhile since I provided an update on my little academic experiment.  Every paycheck, I take a little bit of pocket money and use Loyal3 to invest in Berkshire Hathaway stock.  It isn’t much ($20/month at the moment) but I’m using it as a principle to demonstrate how anyone can invest a little bit of money and what it grow over time.

Here’s how the growth of the account has fared over the past 26 months:

BHIP-062915

The curve showing Shares Owned has been relatively steady, indicating that the market price of Berkshire stock hasn’t changed too much over time (since I always invest the same amount).  My family now owns over two full shares of Berkshire.  Pretty cool eh?  It seems like not that long ago we didn’t own any.  I could have easily used that $20/month and bought lunch at work with it and not thought anything of it.  But now, I get to look at an account balance that’s steadily growing, and its one that reminds me that I’m a small, teeny, tiny partner in the great enterprise that Warren Buffet and Charlie Munger have built.

Speaking of Berkshire, there has been much talk recently about the Kraft-Heinz acquisition.  The size of the deal leads many to believe (myself included) that eventually the large food group will become a fully owned subsidiary of Berkshire.  Let’s face it, the empire Buffet and Munger have built has become so large at this point that there aren’t that many places to go continue growing at a fast clip.  It’s the problem that you and I will probably never face – having so much money to invest that there are not enough opportunities to put it to work fast enough and intelligently enough.

Alas, we’ll see what happens.  I’d certainly like for Berkshire to pay a dividend once (if) all the growth opportunities dry up at some point.  If the Federal government didn’t double tax dividends (once at the corporate level and once at the individual investor level), more companies might be inclined to return cash to shareholders this way.  But I digress….for now, I’ll just keep slowly building and ownership position.

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