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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (36865)	3/6/2010 3:08:32 AM
From: Madharry	1 Recommendation Read Replies (2) \| Respond to of 78476

Now that I am grappling with trying to manage taxes in a taxable account I can finally appreciate the brilliance of buffett who was able to accumulate quality stocks over decades without having to sell them and generate taxes. fwiw i looked at the rate of return over a decade or so if one had purchased brk.a at a previous high of 78,305 in june of 98- about 3.5% annual return to recent high. and the decade low of 44,000 on 2/2000 annual return rate of 11%. Based on these observations I have seem to have a choice of conclusions. 1. Berkshire Hathaway is still way undervalued. 2. The expectation that stock market should return an average of 10% p.a. seems ridiculous when the best capital allocator in the world only returned 11% if one was fortunate to buy shares at a decade low. 3. stocks during that 1998-2000 period were way overpriced. 4. the efficient market hypothesis is bunk.