Post #12372 by sykesix on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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To be fair to Divi (Dividends20) he very especially constantly pounded the table for T., the stock whose name nobody here could hear anymore (longer term posters know). Since he did this Tesla indeed became a 10 bagger (still is a 5 one).

Let's be fair.

Credit where credit is due indeed, but sometimes it is better to be lucky than good. TSLA has P/E of 113 and a PEG ratio at 8.8, if my math is correct. That is extremely aggressive pricing.

Just throwing some spaghetti here...if the P/E were to drop to 20 in say six years, that implies earnings would grow at a 33% CAGR with no increase in price. That's a heavy lift. Sales were down a bit last year and EPS was down a lot. I'm guessing sales and EPS are going to be down again in Q1.

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