Personal Investments • Berkshier Hathaway vs voo or vti in taxable account

Hello all,

I am new to Bogleheads but am still finding this early in life, as I am only 22.

Investing has been a hobby for me for quite some time and I have been paying attention to stocks since a young age with my first investments being in 2012. starting off I was basically just picking whatever companies I thought could do good and buying individual stocks. As someone who did not know what they were doing sometimes I did very well but other times I got crushed (this happened more often than I would like to admit). I feel like I have learned a lot through these experiences both about how the market works and about the physiology of investing and how it can play on your emotions.

As a young individual, I am very risk-tolerant** and I have found that a stock dropping a considerable amount will not scare me into selling (for better or worse).

I am currently looking to maximize return on my investments large variation in price is not a huge concern for me as I do not know when I will need to withdraw from these accounts but I expect a majority of the withdraws to be for early in retirement with a good probability of some withdraws in the future for large purchases if the markets are doing well at the time such as cars and a house.

Now that you know a bit about me, here is my question. How bad is it to invest a majority of my taxable account in Berkshire Hathaway? how much worse would this be than Voo? I understand that it is less diverse but I like the fact that it does not pay any dividends in order to reduce tax drag. Berkshire has also done quite well in the past compared to Voo when there are economic downturns it seems to not be very volatile and continues to show gains. I know this is still a single stock but it is at least a step in the correct direction from my current portfolio of mostly high-risk individual stocks.

I currently have a 0% capital gains tax so re-balancing/capital gain harvesting my positions that have gains will be free this year I am planning on doing this around October- December. I will hold positions with large losses until next year as the tax loss harvesting is worth more than the remaining investment at this point.

** Edit to follow question guidelines better**

Emergency funds: Lean Should be enough to cover a lot of potential unforeseen events for me.

Debt: Debt free

Tax Filing Status: Single

Tax Rate: 0% Federal, 0% State (only working a few months in 2024 full-time student)

State of Residence: not relevant

Age:22

Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: 0% of stocks (could be convinced otherwise)

Portfolio size: $xx,xxx.00 Five digits

Current investment assets


Taxable (81.48% of assets invested in taxable account)
1.34% cash
25.58% BERKSHIRE HATHAWAY INC. (XNYS:BRK.B)
17.55% CROWDSTRIKE HOLDINGS, INC. (XNAS:CRWD)
6.97% SPDR S&P 500 ETF (ARCX:SPY) (0.09%)
2.92% DATADOG, INC. (XNAS:DDOG)
2.85% ADVANCED MICRO DEVICES, INC. (XNAS:AMD)
2.54% BLOCK, INC. (XNYS:SQ)
2.45% TARGET CORPORATION (XNYS:TGT)
2.30% iShares:Interest Rt HY B (ARCX:HYGH) (1.12% gross)
2.28% VanEck:FA High Yld Bond (XNAS:ANGL) (0.25%)
1.99% iShares:0-5 TIPS Bd ETF (ARCX:STIP) (0.03%)
1.91% THE WALT DISNEY COMPANY (XNYS:DIS)
1.90% Vanguard Rus 2000 Id;ETF (XNAS:VTWO) (0.10%)
1.89% iShares:US Treasury Bond (BATS:GOVT) (0.05%)
1.68% DRAFTKINGS INC. (XNAS:DKNG)
1.36% PAYPAL HOLDINGS, INC. (XNAS:PYPL)
1.17% NVIDIA CORPORATION (XNAS:NVDA)
0.96% FUBOTV INC. (XNYS:FUBO)
0.63% FASTLY, INC. (XNYS:FSLY)
0.38% Upstart Holdings Inc (XNAS:UPST)
0.26% CURIOSITYSTREAM INC. (XNAS:CURI)
0.20% AT&T INC. (XNYS:T)
0.14% Gerdau SA (XNYS:GGB)
0.11% INFINERA CORPORATION (XNAS:INFN)
0.10% Affirm Holdings Inc (XNAS:AFRM)

No 401k or HSA avalable at the time (unemployed should get access to one in 2025)

Roth IRA (18.52% of assets invested)
10.89% SPDR S&P 500 ETF (ARCX:SPY) (0.09%)
4.17% TARGET CORPORATION (XNYS:TGT)
1.82% PAYPAL HOLDINGS, INC. (XNAS:PYPL)
1.59% FUBOTV INC. (XNYS:FUBO)
0.05% THE WALT DISNEY COMPANY (XNYS:DIS)
Would like to move funds from spy to SWPPX S&P 500 Mutual fund but have not completed my research. (0.02% expense ratio)

Contributions
New annual Contributions
$7k Roth IRA (in 2024 hopefully) (in 2025 going forward I plan to put 15% of gross income into retirement accounts + employer match Seems like the correct balance to me)

$0 taxable (0 in 2024 will likely increase in 2025)(Taxable account will likely be used for retirement as well as larger financial purchases such as a house and maybe a car I am not currently looking at needing either of these in the next several years so I will figure out a more detailed savings plan for these once I have a full-time job in 2025)

** End of Edit**

what are your opinions on growing Berkshire positions instead of voo or spy in order to reduce taxes and fees?

or is going straight into the lazy 3 fund portfolio going to give me better returns over 40 years? I do enjoy having at least some individual stocks in my account but I think reducing the percentage is likely an advisable plan. ( considering Berkshier separate from individual stocks because it is sort of a conglomerate of several companies due to its business model)

I know this kind of turned into a ramble so thank you for bearing with me. I look forward to hearing your thoughts. if you have any clarifying questions let me know.

Statistics: Posted by Robert20 — Sat Apr 20, 2024 6:57 pm — Replies 31 — Views 2686