Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
 Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Post of the Week!
Search BRK.A
Shrewd'm.com Merry shrewd investors
Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Post of the Week!
Search BRK.A

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
Unthreaded | Threaded | Whole Thread (10) |
Author: Maharg34 ✧  😊 😞
Number: of 15058 
Subject: Thinking of BV multiple for BRK as a function of i
Date: 02/07/2023 10:12 AM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 0
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?
Post New | Post Reply | Report Post | Recommend It!
Print the post
Unthreaded | Threaded | Whole Thread (10) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Ticker or Board Name Author

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds