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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: CAPE and BRK
Date: 12/01/23 11:29 AM
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No. of Recommendations: 8
"The Cyclically Adjusted Price to Earnings Ratio, also known as CAPE or the Shiller PE Ratio, is a measurement from Robert Shiller. It adjusts past company earnings by inflation to present a snapshot of stock market affordability at a given point in time."

dqydj.com - Shiller pe cape ratio calculator

Pointless, interesting, or what?

S&P500 CAPE is currently about 33. Interesting to me, it was also about 33 in January 1998, when I bought my first shares of Berkshire.

Berkshire performed significantly better than S&P500 since then. CAPE was also about 33 in June 2001, with the same result.

15 years ago, the S&P500 CAPE was 16, and S&P500 performed better than Berkshire since then.

Only three data points, of course, but could it be that relative valuation matters over the long term?

[Posted something similar (with pictures!) on the Fool]
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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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