Any other companies like Leucadia?

[shalab]

Yeah, at 30 yrs, it doesn't even come close.

 

Can you please explain your thesis? You can compare random things - e.g: compare Microsoft and LUK or AAPL and FFH over random time periods which doesnt make sense.

 

 

[Myth465]

Yes im not sure where you guys are going with all these comparisons. I wasnt even around 30 years ago, and am trying to pick the best investments available today.

[netnet]

Scorpion was responding to the quote at the bottom of the post, that BRK out performed LUK.  It did not.  

 

Thanks Scorp.  I knew this was wrong; I knew that LUK had outperformed BRK over the years, but I was going to my fact checking over the weekend.  Thanks.

 

The points are:

 

1) Nullius in verba From the Royal Society, take nobody's word for it, i.e. do your own research! (from Mauboussin)

 

2) Just because you are less than 30, doesn't mean you should not have a 30 year investment horizon.  Looking for, finding and investing in a 30 year compounding machine makes for a sweet retirement.

 

3) Some people have suggested BRK rather than LUK.  Well LUK has the better record, younger managers, and a smaller capital base.

 

On the original post,  is the point the method of compounding, or the compounding itself that is most important?  I would argue that LUK is unique, as is BRK etc. and the thing to do is find that compounding machine.

 

 

I initially only calculated a 4 year time frame to prove a point to Myth465...

 

If you look 10 years out, yes LUK outperformed BRK by 139% but if you start looking out even further, let's say 20 years BRK outperformed LUK by 29% which speaks volumes on it's own.  If we look out even further it would be much more dramatic.

 

Considering BRK's size, I still feel long term you will do extremely well and continue to obtain above average returns...

 

Thanks,

 

S

 

Wrong, Wrong, Wrong

[biaggio]

Go where the puck is going to be not where it has been?

 

LUK is smaller so you would think it will be able to grow faster than BRK which is huge.

 

I own both.

[biaggio]

Shalab, agree with your post.

 

I think you want to put your money in the company that is going to do well in the future. You can use history to help. But ultimately you have to think what the business will look like in 10 years + the price you re paying for it.

 

Both LUK + BRK will do well (because they are led by great leaders/capital allocators), but because of market cap I would think that doubling LUK will be a higher probability? But who knows. No sure bets.

 

Agree you can t just look at the price movement on a chart.

 

 

"It is pretty clear where the puck has been though "-I read that young Gretzky would watch a game + would draw on paper where the puck was as the game was going on. Probably a good idea to look at the patterns  in the past to improve your chances of anticipating what the future will be like.

 

 

 

[ourkid8]

My mistake  :-[

 

 

Leucadia market price now (ADJUSTED FOR SPECIAL DIVIDENDS, SPINOFFS, AND DIVIDENDS): $33