Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
Unthreaded | Threaded | Whole Thread (68) |
Author: Dagdom   😊 😞
Number: of 22351 
Subject: Re: OT: S&P versus T-Bills?
Date: 07/25/24 2:52 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 3
Everything in this long thread makes a lot of sense and without disagreeing with any of it I think the piece missing is return on equity of the underlying businesses. Over a long enough period that is the key determinator (is that a word?) of your return.

12% over say 60 years is 1000x your money. If valuations go down 75% over that same period you end up with 250x your money.

6% over 60 years is 33x your money. If you bought cheap and valuations go up 5x over that period (say from pe10 to pe50) you make 165x your money.

There are a number of complications to this simplified example granted, and I don’t own any index funds myself but high or decent underlying returns on capital I think would be the best argument for long term close your eyes and jump or DCA retirement investing for your kids.
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to Dagdom here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
Unthreaded | Threaded | Whole Thread (68) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community