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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.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: mungofitch ✹✺🐝 SILVER
SHREWD   😊 😞
Number: of 22353 
Subject: Re: OT: Navigating Lost Decades
Date: 06/21/26 2:15 PM
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No. of Recommendations: 18
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
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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
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