 |
 | |
 |  |
| We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level. |
Are there others like Buffett that we could hitch a ride with? With its market cap at $75B, is Berkshire too big to grow? For those that are Berkshire fans (or fans-to-be), you may find the following interesting: Last 17 years, book/sh compounded at the rate of 27.7%/yr Last 10 years, book/sh compounded at the rate of 27.7%/yr Last 7 years, book/sh compounded at the rate of 27.7%/yr From 1985-95, book/sh compounded at the rate of 24.3%/yr Last 5 years, book/sh compounded at the rate of 26.9%/yr The consistency is just amazing. The stock price is more volatile of course. Below is the ratio of Berkshire's stock price to its book value since 1980 (yearend figures): 1980 1.25 1990 1.45 1981 0.95 1991 1.41 1982 1.02 1992 1.52 1983 1.28 1993 1.85 1984 1.08 1994 2.02 1985 1.50 1995 2.23 1986 1.36 1996 1.79 1987 1.19 1997 1.80 1988 1.58 1989 2.02 (my guess is that this ratio averaged about 1.0 from 1970-79) Conclusion: 1) Recent history suggests Berkshire is not too big to grow (Buffett is not loosing his touch at all), 2) we can expect the stock-to-book ratio to move between 1.5 and 2.0 under normal stock market and interest rate conditions. Bottom line: Buy on tips with CONFIDENCE that it will come back during normal market corrections. And should the market crash, have confidence that Buffett will take advantage of it, and the stock will come back strongly given 2-3 years time. It was after the 1987 crash that Buffett loaded up on Coke and Gillette. (we only wish Buffett was younger or eat less meat so he could live longer) For those that know Buffett well, are there other (younger) investors (of Buffett's caliber) out there that we can hitch a ride with? (note, unlike hedge funds, Buffett does not charge us for the ride, or are limited to a limited number of private investors.) Buffett took over Berkshire in 1964 when its book value was $19.46/sh (total of $22.1m in equity w/ 1.138m shrs). Without charging the public a penny since that day, he has allowed anyone to ride along with him over the past 33 years. Compare this to what mutual funds and hedge funds charge, Buffett's story is truly amazing. So, are there others like Buffett that we could hitch a ride with? If so, could you tell us a little about the manager? | ||||||||||||||
|
| Home | Hot | SubjectMarks | PeopleMarks | Keepers | Settings |
| Terms Of Use | Contact Us | Copyright/IP Policy | Privacy Policy | About Us | FAQ | Advertise on SI |
| © 2025 Knight Sac Media. Data provided by Twelve Data, Alpha Vantage, and CityFALCON News |