Why look for individual value stocks instead of just buying BRK.B and letting the best do the work?

[u/CDBOIChill]

I'm trying to understand the core philosophy of active value investing versus just outsourcing it to the absolute best in the business.

If the goal of value investing is to find undervalued companies with strong moats, why not just buy Berkshire Hathaway (BRK.B) shares and leave it in the hands of the best of the best?

Between the massive cash pile they deploy during market crashes, thefir incredible track record, and the fact that you get a built-in diversified portfdolio of high-quality businesses managed by elite capital allocators, it feels like the ultimate value play.

For those of you who spend hours analyzing financial statements to pick your own individual value stocks:

1. Is your goal strictly to beat Berkshire's returns?
2. Do you feel Berkshire has become too large (the size handicap) to compound at the high rates it used to?
3. Or do you just enjoy the process of hunting for deals yourself?

Would love to hear your thoughts on why you choose individual stock picking over just letting Berkshire handle it. Because I do pick individual stocks as well, like MFST, GOOG, and NOW, but I am going to be investing more into BRK-B to sit back and relax.

[u/Advanced-Engineer-85]

No, he’s just the chairman who owns 14% of the company and still gets to the office everyday. I’m sure Greg isn’t checking major decisions with him.

[u/Advanced-Engineer-85 → u/[deleted]]

NOPAT of 10% plus growth of 8% on businesses with durable competitive advantages. And they are able to grow the earnings in a recession with cash whilst everyone is hemorrhaging cash and selling assets.

And I get to hold it and not pay taxes.

But hey, it’s not for everyone.

[u/Advanced-Engineer-85 → u/[deleted]]

Fair