Subject: Re: OT: Navigating Lost Decades
Take a look at the 1997-2012 period for example.

True enough.

From average day in 1997 to average day in 2012, 15 years, Berkshire's market price return was inflation + 5.0%/year
Book per share rose inflation + 8.88%/year, so the weak result was all multiple compression.

True for one stocks, true for all stocks: high starting valuation multiples are a bad omen for forward returns.

Jim