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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", sykesix asked the members: "What do you do if you arrive early at movie besides go to the snack bar?" 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: AdrianC ⎊✹  😊 😞
Number: of 22989 
Subject: Re: CAPE and BRK
Date: 12/04/23 10:58 AM
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Jim: The reason that CAPE has such strong predictive power for forward returns over a multi-year horizon is that the value of the companies a very broad index in a very broad economy can grow in value only as fast as that economy, which is a relatively small and predictable rate.

Does CAPE have strong predictive power?
I notice that over the last 10 years:
SPY (and Berkshire) CAGR 8.7% real
GDP CAGR 2.3% real
CAPE from 25 to 33 CAGR 2.75%

Is there 3.6% CAGR unaccounted for?
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This community has written 22,499 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 · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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