Better Buy: Berkshire Hathaway vs. GE
It's difficult to argue against market-beating performance, and Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) has done it far more often than not. While it's struggled in recent years, that may have more to do with the environment than a loss of Buffett's -- and now his acolytes' -- magic touch. The fund's average annualized performance since its inception in 1965 through last year has been more than twice as fruitful as the S&P 500's typical yearly gain.
At the other end of the spectrum, General Electric (NYSE: GE) has become a tough reminder that past performance is no guarantee of future results. Even with the rebound effort that started to take shape a year ago, shares of the tarnished blue chip stock are still less than one-third of their peak value from 2016. The iconic industrial company appears to be fighting for its very survival.
This is one of those rare cases, though, where the risk of owning a seemingly troubled name might be worth more than the reward of holding a more proven one. In other words, perhaps a bet on General Electric isn't a crazy idea right now.
Source Fool.com
