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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: Mark   😊 😞
Number: of 21944 
Subject: Re: RW, Buffett and Munger
Date: 03/14/25 7:07 PM
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No. of Recommendations: 6
What if Berkshire had granted options to Warren Buffett and Charlie Munger over the past half century?

Well, let's say they granted options to themselves and to the other high execs in the various companies. Let's say in the 1970s they used $50M of Berkshire value for that each year, and in the 1980s they used $500M of Berkshire value for that each year, and in the 1990s they used $5B of Berkshire value for that each year, and in the 2000s they used $10B a year, and in the 2010s they used $20B a year. Now go back and either remove that amount from total Berkshire compounding OR go back and dilute the shares retroactively. What do you see? Yes! You will see that Berkshire as a whole isn't worth nearly as much as it is worth today because it lost a HUGE amount of compounding over 10, 20, 50, even 60 years. Or you might see that instead of X shares outstanding today, there are 2*X or 3*X shares outstanding by now. If there are 3*X shares outstanding by now, each share is $166 instead of $500.
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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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