Röko: New venture by CEO who 100x'd the value

[lazyway]

@JP199

Perhaps the matter can be summarized such that if successful, Röko will become a kind of mini-Berkshire, but with European SMEs without the insurance companies’ float So it’s pretty futile to expect any +20% turbocharged annual returns, but by purely reinvesting cash flows, there could be quite reasonable chances for, say, 15% annual returns on paper.

Speaking of mini-Berkshires. Fairfax is trading below P/E 10, its market cap is in the same ballpark as Berkshire was in the early 90s (adjusting for inflation), it is aggressively buying back its own shares, and has delivered over 20% ROE for the last 5 years. Röko is already priced close to its full potential, while Fairfax has plenty of room for multiple expansion. So, a bit of a “buff” at this point. Some Röko investors might be interested if Berkshire-like companies are close to your heart.