Subject: Re: Approaching 500
From current prices, you can expect low returns from Berkshire, but you can expect even lower returns from the S&P. As Munger has advised, “lower your expectations.”

My take: with BRK you get your earnings yield of 3% plus your inflation of the money supply at 7% plus some real earnings growth at say 4% for a total (WAG) return of 14%. We live in a different world now. Is there any doubt that the government has every intention of running massive deficits and printing like never before? Cash and bonds are negative yielding after debasement - they need to go to 10% to be competitive with equities.