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JohnCLeven (46.53)

A visualization of Berkshire's potential appreciation over the next decade



December 07, 2012 – Comments (2) | RELATED TICKERS: BRK-B , BRK-A

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,


2 Comments – Post Your Own

#1) On December 08, 2012 at 1:27 PM, JohnCLeven (46.53) wrote:

fixed the link (I hope)


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#2) On December 12, 2012 at 11:38 AM, JohnCLeven (46.53) wrote:

UPDATED to reflect Berkshire's new policy of buybacks at 120% of book value. this graph shows BV growth rates of 4%,7%,10%,13%, and 16% and a 1.2x multiplier (120% of BV) ENJOY!

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