As of yesterday based on 2002 to present equates to 9.52% compounded.
Next question. I’ve not been able to find 20 year book value growth over the last 20 years, how does it compare?
Year % Inc S&P 500 Book of A Book of B
Book TR
2000 6.5 -9.1 $40,442 $26.96
2001 -6.2 -11.9 $37,920 $25.28
2002 10.0 -22.1 $41,727 $27.82
2003 21.0 28.7 $50,498 $33.67
2004 10.5 10.9 $55,824 $37.22
2005 6.4 4.9 $59,377 $39.58
2006 18.4 15.8 $70,281 $46.85
2007 11.0 5.5 $78,008 $52.01
2008 -9.6 -37.0 $70,530 $47.02
2009 19.8 26.5 $84,487 $56.32
2010 13.0 15.1 $95,453 $63.64
2011 4.6 2.1 $99,860 $66.57
2012 14.4 16.0 $114,214 $76.14
2013 18.2 32.4 $134,973 $89.98
2014 8.3 13.7 $145,619 $97.08
2015 6.4 1.4 $154,935 $103.29
2016 10.7 12.0 $171,542 $114.36
2017 23.0 21.8 $211,750 $141.17
2018 0.4 -4.4 $212,503 $141.67
2019 23.0 31.5 $261,417 $174.28
2020 9.8 18.4 $287,031 $191.35
2021 19.4 28.7 $342,622 $228.41
2022Q1 $345,469 $230.31
Next question. I’ve not been able to find 20 year book value growth over the last 20 years, how does it compare?
Nominal dollars:
Book per share 2002-Q1 39,452 (20 year CAGR since then 11.46%)
Book per share 2012-Q1 106,588 (10 year CAGR since then 12.48%)
Book per share 2022-Q1 345,469
Inflation adjusted, adjusted to today with CPI 292.30
Book per share 2002-Q1 64,858 (20 year real CAGR since then 8.88%)
Book per share 2012-Q1 136,827 (10 year real CAGR since then 10.02%)
Book per share 2022-Q1 355,579
Jim
15 Likes
11.15% price to book… so given recent price weakness it’s fairly similar.
As of yesterday based on 2002 to present equates to 9.52% compounded.
Interestingly, I just checked the compounded return of each lot of Berkshire we own dating back to 2002 and this checks out. We bought in at a relatively high P/B in 2002 but still managed almost 10% a year over two decades. Lots that were purchased in 2008 and 2009 at under 1.15 P/B have returned greater than 14% per year.
What was the price to book in 2002?
What was the price to book in 2002?
Rich.
Average P/B was 1.838
Average ratio of price to peak-to-date book was 1.784
It’s hard to make any good comparison involving prices and returns that crosses the boundary of late 2007.
Almost all valuation multiples before that are higher than almost all valuation multiples after that.
The progress of most good valuation metrics, though, has been pretty steady since 1998.
Especially if you don’t get sucked in by the quirks of book value:
For example, the bubbly [sorry] prices of Coke in the late 1990s or transient dips in book during bear markets.
Jim
7 Likes
It was 1.43 when I bought the lot. The return to today’s price would be just under 10% annually.