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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
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Number: of 22346 
Subject: Re: 2027?
Date: 09/22/26 10:27 AM
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No. of Recommendations: 23
The year of flat prices isn't a shocker, as valuation levels were rather above average a year ago. Things look a little better now. If nothing else, Berkshire was buying shares at $495 in July, so purchases at $503 today probably aren't going to make you go broke.

What is your expectation, for both BVPS growth and for price increase.

I'm willing to give it a stab.
Relatively normal rates, which might count as a bit optimistic these days...all bets are off if something snaps in the world economy.

Book growth 8.2%/year rate nominal (2%/quarter compounding)
Ending multiple 1.43 times book
So, maybe Q3 2027 book around $385 which will be known next October, price around $550, upside from today's $503.50 of nominal 9.2%?

Unless something breaks.
There might be a dip in book per share in a bear market (remember those?), but I'd ignore those dips, assuming it's always transient and not really reflecting a drop in value. For good returns in the next five years, what Berkshire needs more than anything else is a deep bear market.

Jim
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This community has written 21,850 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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