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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: Maharg34   😊 😞
Number: of 21939 
Subject: Thinking of BV multiple for BRK as a function of i
Date: 02/07/23 10:12 AM
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Assume we have perfect hindsight and we know that over the next 20-30-50-100 years BRK BV growth exactly matches S&P 500 total return performance. What is the fair book value multiple for BRK in this case?

Assume that both BRK and S&P 500 have similar risk profiles.

I would think it should be 1.0x BV in that case. In this line of thinking, any higher multiple of BV for BRK should be because of expectation that it would perform better than S&P 500.

Am I thinking about this correctly or do you see any issues?
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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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