Message Font: Serif | Sans-Serif
No. of Recommendations: 85
I've now been a Berkshire shareholder for a few days over thirteen years. My first shares purchased on 2/15/2000, which I still hold, have provided a total return of 229%, or 9.6% annualized. During the same holding period SPY has provided a total return of 28%, or 1.9% annualized.

Book value at 12/31/99 was $37,987 and my guess for Book value at 12/31/12 is $113,000 which is a compound rate of 8.75% so the majority of my return on this initial position is attributable to Berkshire's progress in book value (and intrinsic value) while a small amount involves a minor expansion in the P/B ratio (fwiw, most of my other positions suffer from a contraction in P/B from time of purchase till now).

Over the past 13 years we have seen, among countless other events:
* Collapse of the dot com boom and associated stock market crash.
* Terrorist attacks of September 11, 2001
* Wars in Iraq and Afghanistan
* Real estate bubble and collapse
* Near total collapse of the worldwide financial system
* Most serious recession since the Great Depression
* A second stock market crash in less than a decade

So I'd say Berkshire's results are pretty good overall. Thanks Warren and Charlie!
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.