Berkshire Beats Market, But Private Firms Fuel Growth

Berkshire Hathaway is beating the market, but its biggest stock holdings like Apple and Bank of America are underperforming.

Much of Berkshire's gains are coming from its privately-held companies, not its stock picks. These generate lots of cash.

Investors can't directly invest in Berkshire's private companies. Alternatives are private equity firms and business development companies.

Blackstone and Prospect Capital are examples of firms that invest in private companies and provide exposure for regular investors.

The private equity and credit markets are growing rapidly, suggesting investors should consider alternatives like these amid high stock valuations.