WTM has long touted their relationship with Buffet as the main reason to invest ...
Now those of us who have long recognized this over-rated organization for what it is... a me first, un-American, organization led by management who care more about their pockets than policyholders and employees... will probably see the stock go down significantly over the next year...
At this point, would it make any sense to hold?
1985 - $1500 / A Share
2005 (Aug) - $83,000 / A Share
Total Compound Return: 22.2% per year.
(data from http://www.secinfo.com/d11MXs.uXKy.d.htm)
1985 - $26
2005 (August) Price - $633/share
Compound Rate of Return: 17.3%
Dividends cannot add more than 1.5% or so.
How is my calculation wrong?
You can use the DCF calculator at : http://www.1728.com/compint.htm to punch in the figures.