Munger on Berkshire's Future, Taxes, and the Debt Ceiling

[Parsad]

Article on a Munger interview:

 

http://finance.yahoo.com/news/Charlie-Munger-on-Berkshires-fool-1816838899.html?x=0&.v=2

 

Here is the actual CNBC interview:

 

http://video.cnbc.com/gallery/?video=3000019591

 

Cheers!

[stahleyp]

with regards to the "Buffett premium," if one purchase berkshire in 1990 or 1980, what's the compound return? I know the book value rose dramatically, but I can't find data that old for share increases. Sanj, if anyone knows, I bet you do.

[Parsad]

with regards to the "Buffett premium," if one purchase berkshire in 1990 or 1980, what's the compound return? I know the book value rose dramatically, but I can't find data that old for share increases. Sanj, if anyone knows, I bet you do.

 

Stock price end of 2010: $120,450

 

Stock price 1980 & Annualized Return:  $425    20.7% annualized return

 

Stock price 1990 & Annualized Return: $6,675    15.6% annualized return

 

Cheers!

[Liberty]

Thanks Parsad.

 

It wouldn't be a Munger interview without some Costco reference... anybody here own it?

[stahleyp]

with regards to the "Buffett premium," if one purchase berkshire in 1990 or 1980, what's the compound return? I know the book value rose dramatically, but I can't find data that old for share increases. Sanj, if anyone knows, I bet you do.

 

Stock price end of 2010: $120,450

 

Stock price 1980 & Annualized Return:  $425     20.7% annualized return

 

Stock price 1990 & Annualized Return: $6,675    15.6% annualized return

 

Cheers!

 

You're the man. thanks!

[tombgrt]

with regards to the "Buffett premium," if one purchase berkshire in 1990 or 1980, what's the compound return? I know the book value rose dramatically, but I can't find data that old for share increases. Sanj, if anyone knows, I bet you do.

 

Stock price end of 2010: $120,450

 

Stock price 1980 & Annualized Return:  $425     20.7% annualized return

 

Stock price 1990 & Annualized Return: $6,675    15.6% annualized return

 

Cheers!

 

 

1980

investments/share : $754

earnings/share : $19,01 x 10

IV using Tilson's method = $944

Stock price = $425

 

1990

investments/share : $7798

earnings/share : $102,58 x 10

IV using Tilson's method = $8823,8

Stock price = $6675

 

 

2010

investments/share : $94730

earnings/share : $5926 x 10

IV using Tilson's method = $153990

Stock price = $120000

 

 

1. I'm shocked by how low BRK was valued in 1980 using this valuation. I'm confused?

Can we really value investments/share for the full amount for 2010? It's not like we get a 10-15% yield from it. This isn't really the investing vehicle it once was...

And what were BRK's stock prices in '81,'82,... ?

2. Undervaluation in 1990 was significant but the following years proved to be very rewarding. Repeat from here on? Of course growth possiblities are far from the same now but I believe IV under this valuation should also be a lot higher because of strongly increasing earnings.