Subject: Re: New All Time Highs
New All Time Highs

Back in the trillion club. Though the price is actually still trailing the insurance sector lately, the mood is good.

But the forward returns possibly less so.
At today's high price so far, $491.67 per B share, the most plausible short to medium term outlooks are not so great.

Assuming (say) book grows at a nominal 10.3%/year made up of a pretty typical 7.1%/year real growth and 3.2% inflation, and market multiples average around 1.4 times book, the next three years would get you a real return of inflation + 1.3%/year.

I love the firm, but I wish it were cheaper so I could really reload in a big way.
Nobody minds if I wish for a price crash? Just a short one, I promise!

Jim