Fees on the firm's open-end and exchange-traded funds are a weakness, contributing negatively to the rating and creating a larger performance hurdle on funds. On average, Berkshire charges fees on its funds that are in the most expensive quintile of similarly distributed funds. With the current market environment of fee compression, this is cause for concern, as investors may flock over time to alternate asset managers to get a better deal. The firm's risk-adjusted performance is poor. Across all open-end and exchange-traded products, the firm’s average overall Morningstar Rating is 1.0 stars. Portfolio management turnover at Berkshire is higher than at peer firms, detracting from the overall assessment of the firm's stewardship. Turnover in the portfolio-management ranks can happen for a number of reasons, including mergers and liquidations, portfolio managers moving into other roles, or portfolio managers leaving the firm. In some cases, such change may not signal a serious or immediate problem at the firm, but can still be disruptive for investors, hinder the effectiveness of a firm’s investment processes, or suggest a weaker investment culture.
Berkshire Hathaway Shareholders Push for Progress on Climate, Workplace Diversity
Proxy-voting proposals won significant support from independent shareholders in 2023.