Hi all !

New to the forum... and this being my first silly question...

It is said that Berkshire Hathway (BKH) started with a limited capital, say $10,000 divided into 1000 shares of $10 each.

Over time, the book value has gone upto $2,000 per share. And most importantly, BKH hasn't paid dividends since a long time.

The question is: how this book value has increased from $10 t0 $2,000?

Has it been increased by injecting new capital? (OR)
Have the net profits been capitalised?

Thanks in advance.

Growth in the portfolio businesses adds to the overall profitability and profits of the company. So on a share by share basis the book value has increased. And yes, they have aggressively reinvested the profits over the years

Thanks for your reply.

What does the phrase "share by share" basis mean?

Do you mean, " add original share capital and retained earnings for, say 35 or 40 years, and then divide the cumulative figure by no. of shares "...

Thanks