The Benefits of Leverage in Stock Picking

Berkshire has been leveraged about 1.5 times to 1. However, there's long stretches of time in which as best we can gauge his performance in stocks, it's about 20% a year. So the stock performance is actually similar. With owners money, it might do what the historical return in the S&P over time has been. But it won't kind of beat the S&p. It may be the S&S going forward if the S&C is really overvalued but that's kind of the thing that they face.