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Stocks B / Berkshire Hathaway


Subject:  Re: A fun exercise Date:  10/6/2012  10:11 AM
Author:  kcanant Number:  194701 of 236240

I hit the submit button early.
As a fun exercise, try this calculation for both
 Amazon and Walmart.

I don't know about the "growth rate above inflation"
or the "cyclically adjusted earnings yield",
but I figured out the following for WMT and AMZN.

I defined earnings yield as EBIT/EV
and cribbed the most recent annual figures
from Yahoo.

                    WMT     AMZN
ROE                22.9%   4.94%

Earnings yield      8.9%    .89%

Both companies have a business based on selling
"stuff" at a low price, but have very different
investment characteristics, no?   


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