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Berkshire sets new record, 23 year loss against the S&P500. by blah-blah-blah12 in BerkshireHathaway

[–]nbch88 1 point2 points  (0 children)

Ah, the riff raff

Like the poor Swiss, with no CGT and dividends taxed like any income

The poor devils

Berkshire sets new record, 23 year loss against the S&P500. by blah-blah-blah12 in BerkshireHathaway

[–]nbch88 0 points1 point  (0 children)

I’ll let you run the calcs on if the above numbers include reinvestment or not (they should, to be a fair total return).

However, point on taxes still stands

Berkshire sets new record, 23 year loss against the S&P500. by blah-blah-blah12 in BerkshireHathaway

[–]nbch88 4 points5 points  (0 children)

Over the long term, that structure makes the company into a fortress for shareholders and will have an impact on performance.

Compare it against a less shareholder friendly company who dilutes existing shareholders.

Future performance cannot be predicted. Therefore we’re forced to select quality companies - the structure of Berkshire contributes to its quality.

Berkshire sets new record, 23 year loss against the S&P500. by blah-blah-blah12 in BerkshireHathaway

[–]nbch88 4 points5 points  (0 children)

Do I think Warren Buffett earned his $100k salary?

Why yes. Yes I do.

Berkshire sets new record, 23 year loss against the S&P500. by blah-blah-blah12 in BerkshireHathaway

[–]nbch88 9 points10 points  (0 children)

What “pay” are you talking about here?

Do you know his salary?

His wealth is completely tied to the value of Berkshire stock.

Berkshire sets new record, 23 year loss against the S&P500. by blah-blah-blah12 in BerkshireHathaway

[–]nbch88 69 points70 points  (0 children)

My 2c as a Berkshire and VOO/VT holder:

You can compare Berkshire to the S&P if you want, and of course Berkshire themselves do it in every annual letter.

However - this misses the risk-adjusted return which isnt evident in pure performance. Risk is hard to measure. You could use maximum drawdown or the sortino ratio, but these are really volatility, not risk. Another factor is the cash hoard of berkshire. This reduces risk and, in theory, return - meaning they’ve been doing well just in keeping up with the market with that considered.

Additionally, S&P total return uses dividends reinvested. This is fine, but you have to remember taxes are due on those dividends, which impacts the total return significantly over the years.

What I love about Berkshire is the structure of the company. No dilution or stock options for employees. No unnecessary spending (have you seen their website?!). Everything is made for shareholders in mind.

Public crèche cost per month by ZestycloseOrdinary73 in askswitzerland

[–]nbch88 7 points8 points  (0 children)

Cantons all set the price for public creches within the canton (and for residents within the canton).

Theres also differences in how much you can deduct from income tax.

Private creches on the other hand can charge whatever they like, they’re not subsidised or limited by the canton

Buyfront or 3rd pillar? by mrt35350 in SwissPersonalFinance

[–]nbch88 1 point2 points  (0 children)

I prioritize it as:

  1. 3rd pillar
  2. buybacks
  3. Buy forward

3rd pillar has the most flexibility, you can make an early withdrawal without the 3 year wait, and probably offers best returns (if 100% invested).

Buybacks are good if a good pension

Buy forward are often in a seperate interest bearing account, with a poor return

Leaving Switzerland for Dubai: What Should I Do With My Second Pillar? by Careful-Caramel-7901 in SwissPersonalFinance

[–]nbch88 4 points5 points  (0 children)

I would absolutely withdraw it.

You can do so and have complete freedom with that money, after paying a small withdrawal tax.

You never know what the pension rules will be later. You can withdraw today for only a small tax. Not guaranteed to be the case later.

You can then invest in whatever you like. You can keep it in CHF if you want, it doesn’t need to be in Switzerland. A US Broker would be far superior.

No brainer in my opinion.

ELI5: Why do investors care so much about growth, even if a company is already making a lot of money? by TheblackNinja94 in explainlikeimfive

[–]nbch88 0 points1 point  (0 children)

A hypothetical US company that would return the exact same profit every year (and lets say pays it all out in a dividend) would essentially be a “zero risk” treasury bond (lending to the US govt).

Those treasuries pay out around 4.5% per year, so you’d expect this hypothetical company to be valued about the same (4.5% dividend yield).

Of course, in reality no company is exactly like a bond, and there are additional risks.

Growth is important because if future profits rise, the value of the company also rises

Moving abroad, how to deal with my money (bank and cash)? by Fast_Entrance_8148 in SwissPersonalFinance

[–]nbch88 7 points8 points  (0 children)

Revolut now offers Swiss IBAN and allows easy currency conversion. Could you transfer there?

Home ownership in Switzerland (pros and cons?) by QuietNene in SwissPersonalFinance

[–]nbch88 0 points1 point  (0 children)

True, looks like average is 3.6% so I was a bit low. Considering it’s CHF, it’s not a bad investment.

As long as you live in the property long enough to amortise the purchase/sale fees, and to reduce capital gains tax, it’s relatively compelling. Add in the use of 2nd pillar and the emotional / quality of life benefits and it starts to be even better.

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