A holding company owning subsidiaries engaged in a number of diverse business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, retailing and services.
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Buffett uses Berkshires historical book value growth to measure the companies intrinsic value growth. Despite growing book value at about 19.8% commounded annually over Berkshire's history, it has only grown at a rate of about 10% annually over the past decade. I'm conservatively estimating that it will grow at 7% annually over the next 5-10 years. If the companies price to book value stays as low as it has been(which it may not), and it grows that book value at 7-10% annually over the past 5 yrs, then, logically, the share price should grow at at least a rate of 7% annually over the next 5 to 10 years. I do not not believe the S&P can keep pace with that.
Furthermore, the price of Berkshire has dropped 18% since late 2007 while the book value (Buffett's proxy for intrinsic value) has increased by 30%.