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World Stock Markets Trading Discussion - Petty pilfering


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APPLE BY THE NUMBERS - PART 4

The stock is selling at a price to free cash flow ratio number of 15.

Take out the cash and investments on its balance sheet and this number drops to 11.

So I must CAVEAT my previous statements on this company.

APPLE is no longer a GREAT investment.

But it is stll a GOOD investment.

(Given the low rate environment and overvalued large stock alternatives).

However it does appear to be on its way to being only a reasonable investment.

The days of  30% annual gains are behind it.

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CAN BERKSHIRE HATHAWAY EVER OUTPERFORM THE S&P INDEX AGAIN?????

Berkshire since 2011 has basically underperformed (slightly) an S&P index fund.

Can it ever outperfrom the index again????

Yes it could,

But only in a BEAR market scenario!!!!

Then it would only drop at about half the index drop.

Berkshire has good insurance characteristics for this market.

Its sort of like an S&P index fund with free downside insurance thrown it.

So owning Berkshire vs owning an S&P index funds is primarily for the insurance benefits!! 

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