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Strategies & Market Trends : Buffettology

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To: Terence Mitchell who wrote (355)9/24/1998 9:24:00 PM
From: James Clarke  Read Replies (1) of 4691
 
If your time horizon is two or three years for a 150% return (60,000 to 150,000), Buffett would be the first to tell you you're in the wrong stock. Even if the stock is fairly valued today, which is debatable, you are talking about a return in the 40% range annually. Buffett says again and again that he just shoots for 15% or so, and manages to get 20%. In this low interest rate environment, if you can get 15%, you are way ahead of the game. So why should BRK return you 40%? Get your expectations in line - you've become spoiled by the recent parabolic appreciation of BRK.
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