AzCactus Posted June 26, 2015 Share Posted June 26, 2015 I know that Berkshire is pretty large now so outperforming the S&P might be tough, but not quite this tough. If you look at a 5 year graph, Berkshire has under-performed by a cumulative 20% over that time frame. I'm not sure if this means something or nothing, but it was interesting to me. Link to comment Share on other sites More sharing options...
gfp Posted June 26, 2015 Share Posted June 26, 2015 I think it mainly reflects the fact that Berkshire didn't decline as much in the financial crisis. So 5 years captures only the recovery from the crisis price levels on the index. If you select 4 years Berkshire outperforms. 3 years Berkshire outperforms, 10 years Berkshire outperforms, etc... Link to comment Share on other sites More sharing options...
Jurgis Posted June 26, 2015 Share Posted June 26, 2015 Not that much outperformance in last 10 or 20 years: http://www.cornerofberkshireandfairfax.ca/forum/berkshire-hathaway/50-years-of-brk-wall-print-%28new-letters-book%29/30/ I like BRK at current valuation vs SP500. I might be wrong though. Link to comment Share on other sites More sharing options...
Munger_Disciple Posted June 26, 2015 Share Posted June 26, 2015 YTD Berkshire has underperformed the S&P 500 index by 11%. Link to comment Share on other sites More sharing options...
gfp Posted June 26, 2015 Share Posted June 26, 2015 How did you arrive at 11%? I get something like 8% plus a half year of the SPX dividend yield YTD Berkshire has underperformed the S&P 500 index by 11%. Link to comment Share on other sites More sharing options...
ourkid8 Posted June 26, 2015 Share Posted June 26, 2015 Anyone have any rough calculations of Berkshire's book value? Link to comment Share on other sites More sharing options...
Munger_Disciple Posted June 26, 2015 Share Posted June 26, 2015 How did you arrive at 11%? It was 11% a couple of days back. As of 6/25/15, total return of S&P 500 index was 3.12% whereas Berkshire was down 7.26% which means that the index outperformed Berkshire by 10.38%. Link to comment Share on other sites More sharing options...
gfp Posted June 26, 2015 Share Posted June 26, 2015 Anyone have any rough calculations of Berkshire's book value? It depends on how the Heinz write-up is handled. Last report had Book at about $98 per B share. Current book could be anywhere from 98 to 105 per B share, but the HNZ deal won't close in the 2nd quarter, so the jump could come in Q3. Link to comment Share on other sites More sharing options...
Jurgis Posted June 26, 2015 Share Posted June 26, 2015 Both BRK and FFH outperformed SP500 a lot last year, so there is some "reason" for the underperformance this year. OTOH, it might be opportunity to add. Link to comment Share on other sites More sharing options...
gfp Posted June 26, 2015 Share Posted June 26, 2015 I've been adding as it dips below 140. Would love it if BRK stayed low as lots of cash comes in from arbs in the next week or so. BH, DTV, a lot of deals about to close. Link to comment Share on other sites More sharing options...
cubsfan Posted June 26, 2015 Share Posted June 26, 2015 I added a lot yesterday. Sub-140 looks like a very good price. Link to comment Share on other sites More sharing options...
Jurgis Posted June 26, 2015 Share Posted June 26, 2015 For full disclosure: I own some BRK and I have added recently. Link to comment Share on other sites More sharing options...
ourkid8 Posted June 26, 2015 Share Posted June 26, 2015 I also added under $140 as well...Berkshire is cheap!!! For full disclosure: I own some BRK and I have added recently. Link to comment Share on other sites More sharing options...
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