In 2016, Berkshire Hathaway class A shares rose 23.4% vs. a 9.8% increase in the S&P 500 (with dividends included.) Over the 51 year period from 1965 – 2015, Berkshire’s compounded annual gain equaled 20.8% vs 9.7% for the S&P 500 (with dividends included.) From 2012-2016, the most recent five year period, Berkshire’s compounded annual gain equaled 16.3% vs. 12.2% for the S&P 500.
Berkshire’s closing share price of $244,121 on December 30, 2016, represents a price to book value ratio of 1.5, based on a book value of $163,783 on September 30, 2016. Its price to book value ratio has averaged 1.6 over the past 30 years. Warren Buffett has previously stated that he would buy back shares when Berkshire’s price to book value is below 1.20.
On April 9th 2021, Bruce Greenwald, the founding director of the Heilbrunn Center for Graham and Dodd Investing at Columbia Business School, sat down for a Fireside Chat with Li Lu, the founder and chairman of Himalaya Capital as part of the 13th Columbia China Business Conference. Q1 2021 hedge fund letters, conferences and more Read More