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Equity Funds containing stable cash flow businesses

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
moneybagz
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Equity Funds containing stable cash flow businesses

#337922

Postby moneybagz » September 3rd, 2020, 1:40 pm

Hi,

I'm looking for an ETF or Investment Trust that holds a large proportion of equities with stable cash flow/healthy balance sheets. I'd be grateful for any recommendations. Perhaps Berkshire Hathaway is an option?

Thanks

1nvest
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Re: Equity Funds containing stable cash flow businesses

#338008

Postby 1nvest » September 4th, 2020, 1:31 am

Berkshire Hathaway is neither a ETF nor a Investment Trust, its not even a Mutual fund. It's a single stock with single stock concentration risk factors such as if its insurance arm were to suffer a big hit (claim). It's also transitioning from being a predominately Financial and Consumer Staples sectors concentrated holding to now including more Tech/other. Buffett has considerable 'political influence' and now at age 90 in his absence the tax avoidance mechanisms employed could be called into question - yet another single stock risk factor.

I had reduced down to a single A share, was tempted to buy back a second when the Price/Book declined below 1.0 recently (March) but decided not to, and still have it in mind to sell the remaining share now that P/BV is back up above 1.3 (with the intent to swap over to what he advocates ... a low cost S&P500 tracker). Munger still however advocates Berkshire Hathaway shares be held by his heirs, so a clear difference in opinions there.


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