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Did you take into account leverage due to float?

Also, even if the overall market of equities yields 4 percent, Berkshire’s equities may not yield the same. The overall market seems grossly overvalued. Can we say the same about Berkshire’s portfolio of equities?

In addition, if Berkshire can get a couple of home runs like Apple, their equity portfolio can yield more than the market.

For example, in 2000, the overall market was grossly overvalued and one may have inferred from that that Berkshire will not do very well in the subsequent 10 years. However, I think Jim has shown that pretty much in every decade since 1998 (i.e., however you slice and dice the period from then to now, but take intervals of 10 years), Berkshire’s intrinsic value growth has been more than 10% per annum.
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