Subject: Re: Berkshire Safe Withdrawl Rate
If I remember correctly, and I'm sure Jim will chime in, the idea was book value tends to grow at x% above inflation, and one could withdraw the growth % less a safety factor.

The numbers I had written down were:
Nominal Growth 8.5%
Inflation 2.5%
Safety 1%
Withdrawal Rate 5%


Here's a great backtest.

BRK-A since 3/17/1980, 5% annual withdrawal.
https://testfol.io/?s=c6cZviUh... (click the Logarithmic scale box)

Zoom up from 1980 to 1999.
Price essentially flat from 1999 to 2015.
Very slow climb up from 2015 to 2026.

Initial $10,000, ending value on 2/3/2026 $2,400,000
Total withdrawals $2,000,000