Post #18032 by Rabbitrr on the Berkshire Hathaway board

Please be patient and understanding when interacting with others, and avoid getting frustrated or upset if someone does not respond to your posts or if a discussion does not go as you expected. Remember that everyone is entitled to express their own perspectives. Furthermore, even when you don't entirely agree, try to benefit in some way from it.

- Manlobbi

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

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Elann,

I'm always willing to learn. Can you share your math/reasoning? What is being "double counted?"

I'll give another example. Let's say that on 1/1 you loan me $100 and we agree to a 10% interest rate with the interest being paid immediately and that I have to pay you back by 12/31. Do we agree that your return/yield on your $100 is 10%?

Time goes by and it is 12/31 and I don't have the $100 to pay you. You're flexible. You say OK how about if we extend the loan 1 year but you have to pay me $12 this time and can pay me back the $100 on 12/31 of next year.

What is your return/yield on your $100 in year 2? I could be wrong but I would say that it is 12%. Are you going to tell me that it is still 10%?

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