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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
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Number: of 22353 
Subject: Re: Very OT: Break
Date: 12/24/25 10:23 AM
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No. of Recommendations: 21
Just a follow up on an OT post from about 2.5 years ago, which noted...

A stock mentioned here a few times, Bread Financial Holdings BFH, currently at $39.40. Mainly a private label credit card issuer and loyalty program firm, though you wouldn't be able to tell that from the word salad they use as a corporate profile. They keep making a money.
The reason I mention them: It seems possible that their out-of-fashion cycle ended with some sort of capitulation around May 4. The cutlery has bounced.
Since then:
RSP (average S&P 500 company) up 9.7%
SPY up 12.1%
BFH up 67.6%


Indeed, May 4 2023 was their worst point (lowest price) relative to market. Barring some squiggles, it has been steadily beating the US market on trend since then.
From that low point till now:
RSP (average S&P 500 company) CAGR 14.8%
SPY CAGR 23.9% (hard to beat!)
BFH CAGR 59.2%

Since the post at the top of this thread, when the stock was at $39.40, now at $76.61:
RSP CAGR 11.9%
SPY CAGR 20.6%
BFH CAGR 34.3%

All figures, other than the starting price of 39.40, include reinvested dividends. I don't think it's 100% true that "value investing" doesn't work any more.

For whatever it's worth, average EPS estimates for this year and next are both in the $9-10 range.

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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