Post #648 by Blackswanny on the Berkshire Hathaway board

If you have a moment right now, copy the url of a post you find interesting and email it (or tweet it, or message it) to your friends ever so often. This is the best way to make these boards increasingly active over time. (As for the culture, that has has proven that it is here to stay).

- Manlobbi

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

Unthreaded | Threaded | Whole Thread (10)

Prev | Next

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 0

The other thing I've wondered and noticed over time... as WEB refers to the "anchor" of size... The bigger Berkshire becomes and average returns drift lower will it become a self fulfilling prophecy that the slower trajectory of growth will cause it to trade at lower valuation multiples of for example PBV over the next 10 / 20 years.

Eg a 20 year period @ 9% run rate of book growth would result in book value of $1160 whereas 7% equates to $801

1160 x 1.5 = $1740 CAGR 8.84%
801 x 1.3 = $1041 6.07%

Thoughts?

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (10)

Prev | Next

Announcements

Berkshire Hathaway FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.