A visualization of Berkshire's potential appreciation over the next decade
Here's a little chart I made that shows the price of shares of Berkshire Hathaway, Inc (BRK.B) that one could logically anticipate over the next decade, based on a number of assumptions, including that the "price floor" buyback policy remains intact. It's obvious very simple stuff, but that dosen't mean there's anything wrong with it.
I have here 2 variables: 1) annual book value growth rate, and 2) price to book ratio.
For the annual book value growth rate, we have 3 choices: 7%, 10%, and 13%.
For the P/BV we have 1.1x (the floor) and 1.3 (more reasonable IMO)
Yr 1 = 2012, yr 11= 2022
Here's the visual chart:
Current price $87.25.
Let me know what you think,