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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: very stable genius ✶  😊 😞
Number: of 22353 
Subject: Indexers Crow Omen...
Date: 03/10/23 10:38 AM
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No. of Recommendations: 18
Just For Fun, my "Indexers Crow Omen" has recently triggered.
It's triggering has historically meant, I'm gonna get to buy some BRK at a reasonable price soon!
It triggers when I start reading posts like the following in my travels around the inter-webs'
'I don't understand why people pay so much attention to this failed stock picker (Buffett).'
'Since 2003, he has trailed both the S&P 500 and Total Stock Index.'
'His results since 2009 are abysmal, even with the Apple pick.'
'You would've been better off investing in S&P 500 instead of all this sound & fury.'

Signal recieved, Loud and clear!
When Berkshire is being outperformed (at least temporarily) by an Index Fund
(in which 60% of the companies have only one purpose for existence: enriching management by buying back overpriced shares and gifting them back to themselves!
Not always in that order.)
I know the jig is almost up!

A few other stats I enjoy following'
The boring 1YR T-Bill is yielding 5.14% VS the S&P500 earnings yield of 4.77%.(Roughly half of that 4.77 yield is going into the pockets of management. See Bloomstran report.)
P/Sales is 2.28, It hit 0.80 in 2009 as the bear market bottomed, if you'd like an idea of what is possible.
P/E is 21, was 14 in 2011.
Schiller is P/E 28, was 15 at the 2009 bottom.
P/Book, is 3.95 was 1.7 at the 2009 bottom.
Buffett Indicator currently 142, hit 66 at the 2009 bottom.

Valuations do matter for the long term investor...
Over the last 100 years the S&P 500 took three long, interesting trips to nowhere,
underperforming risk-free Treasury bills for 53 of those 100 years (1929-1945, 1959-1982, and 1995-2009).

Or maybe,
"Stocks have reached what looks like a permanently high plateau." ~Irving Fisher
All The Best!
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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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