Post #10564 by mungofitch on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

Unthreaded | Threaded | Whole Thread (16)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 19

New All Time Highs

Back in the trillion club. Though the price is actually still trailing the insurance sector lately, the mood is good.

But the forward returns possibly less so.
At today's high price so far, $491.67 per B share, the most plausible short to medium term outlooks are not so great.

Assuming (say) book grows at a nominal 10.3%/year made up of a pretty typical 7.1%/year real growth and 3.2% inflation, and market multiples average around 1.4 times book, the next three years would get you a real return of inflation + 1.3%/year.

I love the firm, but I wish it were cheaper so I could really reload in a big way.
Nobody minds if I wish for a price crash? Just a short one, I promise!

Jim

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (16)

Prev | Next

Announcements

Berkshire Hathaway FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.