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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: Said   😊 😞
Number: of 21944 
Subject: Re: OT: Volkswagen
Date: 03/04/23 2:48 PM
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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?
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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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