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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: Aussi ✧  😊 😞
Number: of 21939 
Subject: Re: About that Berkshire
Date: 05/26/24 2:50 PM
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No. of Recommendations: 3
Any sane investor should realize that if real sales for the S&P 500 rise at (say) 2.5%/year in the next 20 years, or whatever figure near that you might choose, then there is no conceivable reason to assume that aggregate net profits will rise any faster than that.

If the mix of companies changes in the S&P 500, why would profit margins not change? The lifespan of a company on the S&P 500 is dropping. 30 years ago the average was 25 to 30 years, now it is about 15 years. So in the next 20 years you could perhaps expect a turnover of maybe 200 companies (10 per year) in the S&P 500 which could have a large positive or negative impact on the change in net aggregate profits compared to sales.

qz.com - How the sp is built and who decides what companies go in it

Aussi

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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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