With a share of Warren Buffett’s Berkshire Hathaway pricing higher by a fraction at $331,000, ETF Trends CEO Tom Lydon has the ETF that allows the investor to own a piece of Berkshire and other value stocks.
Appearing on Fox Business Network’s ‘The Claman Countdown’ on Monday, Lydon explained how a record $410 billion has been going towards ETFs this year, and the Vanguard Value ETF (VTV) has seen $1.5 billion come in just the last month alone. And yes, Berkshire Hathaway sits as the largest weighted holding in this ETF (3.15%).
With that in mind, there’s no denying that there’s been a shift from growth to value, and investors are following that path.
The Movies You Make on the Downside
“Value has underperformed in the last five years to a great extent, but when you look at Warren Buffet’s philosophy, it’s not how you do on the upside, but the moves you make on the downside,” Lydon states.
With $120 billion in their coppers, Buffett is looking to do some shopping, but he’s not going to buy at these high prices. So, most of the stocks in VTV, a value-oriented ETF, tend to do pretty well on the upside, but when the market corrects they tend not to give as much back.
“It’s only four basis points to buy this ETF, so the expense ratio is very, very small. And many, for the joy of the growth of the S&P 500, are starting to shift over to value-oriented stocks.”
Watch the full segment featuring Tom Lydon on ‘The Claman Countdown’ below:
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