Any comments?
Yes.

With the intention to diversify from holding Berkshire only, last Oct I bought Lufthansa. Three months and +60% later I swapped it against VW (US stock symbol: VOW) --- too soon as Lufthansa continued to rise faster than VW. Nevertheless I think longer term VW will be the better investment.

- With Revenue of around $280M
- Growth and Op.Margin conservatively estimated at 6% and 8% respectively
- and current Market Cap $80B***

the multiple of it's earnings in 5 years you pay now is as extremely low as it is for Meta or Carmax (around 4x) --- with some differences though:

- VW's growth/margin history is far less constant, making 5 year predictions more of a bet (but even with radically lowered growth/margin estimates IV5 is still low)
- It traditionally pays a high dividend, currently 4%.
- The so-called "VW law" gives the state (to be exact: "Niedersachsen") a "Sperrminoritaet" = it can block important decisions --- which is if I remember correctly why Mungofitch on the old board expressed his unwillingness to ever invest in VW.

***I don't know where Barron's $90B you quote come from; maybe they mean Euro's?

Berkshire Hathaway FAQ

---

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