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Berkshire Hathaway Inc. Message Board

  • balak_joshi balak_joshi Nov 5, 2011 11:40 AM Flag

    Low dull growth and capital preservation

    Berkshire's Book value is now barely growing year over year. In the last 12 months the book value has gone up 7% from ~90,000 to 96850. There was time the book value was consistently growing 25%. But because of the size and Buffetts's capital preservation shift plus low interest rate environment for insurance floats has made book value growth fall. That is why paying more than 1.1 times book or 106500(at which point berkshire MAY do some buyback) is risky. Thoughts?

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    • baltbear@ymail.com baltbear Nov 5, 2011 5:55 PM Flag

      balak,
      anybody thinking 7% is "barely growing" is somebody i might be able to interest in a stock based on mlm distributed dehydrated mineral water.
      (which was, in the late 90s briefly an amusing trade.).

      that past 25% rate comes from buffet knowing better than to buy anything until it was bleeding hard.

      buffet himself has said that the climate in which that was easy is gone.

 
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