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Berkshire Hathaway CDR (CAD Hedged)
Symbol BRK
Shares Issued 7,550,000
Close 2024-07-09 C$ 31.19
Market Cap C$ 235,484,500
Recent Sedar Documents

Globe says Berkshire knows how to find "compounders"

2024-07-10 09:04 ET - In the News

The Globe and Mail reports in its Wednesday edition that a compounder is a company that delivers sustainable growth over long periods of time. Guest columnist Sharon Wang writes that these are the kinds of quality companies that investors should seek to acquire at a fair price and let grow. There are thousands of publicly listed companies globally, yet only a small percentage generate long-term wealth for shareholders. In a study that analyzed the performance of 64,000 global stocks over a 30-year period, from January, 1990, to December, 2020, researchers discovered that only 2.4 per cent of stocks accounted for all net wealth creation of $75.7-trillion (U.S.). During this time frame, most stocks underperformed the returns of a U.S. one-month Treasury bill. If compounders are the Holy Grail of investing, what kind of attributes should investors look for? One method is pinpointing companies with skilled managers. For example, Berkshire Hathaway buys companies specifically for the quality of their managements, and are given great autonomy in decision-making. They are simply required to provide regular financial statements and send over to Berkshire the excess cash not needed to grow their individual businesses.

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