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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 21944 
Subject: Re: About that Berkshire
Date: 05/26/24 4:19 PM
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No. of Recommendations: 3
For the last ~20 years each dollar of sales has been worth 62% more in net profit for shareholders than it used to be in the prior ~50 years. Maybe that will last and maybe it won't, but historically it's quite the number. From January 1950 up till mid 2004, the absolute peak quarter net margin figure for aggregated non-financial US corporations was 8.48% and the median was 6.11%. So a lasting move down from recent figures around 11% would not be a big shocker.

During the last 50 years there have been several accounting standard changes especially around depreciation and how purchases of companies are handled and also companies spending on capital versus research and branding. To consider that net margins may mean revert I think you have to also consider the requirement for accounting standards and company spending and capital allocation profiles to mean revert.

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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