Grandpa's advice

Grandpa Warren stated this week that if Ben Bernanke is not reconfirmed as President of the Federal Reserve he will sell U.S. stocks. Just when I think I couldn't possible hold America's Grandpa in any more contempt he goes and does this. It prompted me to do a little research as to just how well letting grandpa manage your money would have been over the past ten years.

As previously noted Grandpa would be worth jack without the government bailouts of his largest financial investments, however besides that here is what Grandpa has accomplished over the past 10 years. From 12.31.99-12.31.09 Berkshire Hathaway's A shares annaualized return was 5.86%.

Had you simply bought a 10 year U.S. Treasury Bond on 12.31.99 the U.S. government would have paid you 6.45% annualized. That's risk free 6.45% verses Grandpa, supposedly the world's smartest investor, delivering 5.86%.

I wonder why Becky Quick doesn't point out that listening to Grandpa over the past 10 years would have been worse than taking no risk and investing in a 10 year?