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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: StevnFool   😊 😞
Number: of 21944 
Subject: Re: Exploding CAPEtown
Date: 02/04/24 5:02 PM
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I think the idea of FAPE1 working is somewhat flawed as you can only draw the straight line retrospectively so it includes a crystal ball element.

FAPE2 is interesting. I think there is some validity to it working. If you accept that prices are pulled slowly or even weakly (mean reverting) to some "typical" multiple of earnings, it follows that for a large index, the moving average of price will align to some extent with certain multiple of value (earnings). So it is not so surprising that this works.

StevnFool
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This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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