These eight Belgian companies beat Warren Buffett

Over the past ten years, eight Belgian companies on the stock market have created more value than Berkshire Hathaway, the holding company of US top investor Warren Buffett.

Warren Buffett is the ultimate investor hero. He has managed to increase the book value of his holding company by 18.24 percent annually since he took over Berkshire Hathaway in 1964. The stock price fared even better, rising by 19.93 percent per year. In doing so, the oracle from Omaha easily beats the broad S&P500 index. Buffett's track record makes Berkshire Hathaway the seventh largest listed company today, with a market value of 652 billion euros.

Eight companies on the Brussels stock exchange did even better than Buffett over the past ten years, according to the 14th study from Value Square (see table). Value creation defines Value Square as the increase in book value (equity) added to the dividends paid. For example, if there are capital increases, the manager makes corrections.

The analysis of long-term value creation is not optional: it is one of the pillars on which the manager assesses the quality and risks of all companies. The Belgian equity fund of Value Square won this year's Fund Award from The Time and L'Echo.

Logistics above

‍VGP, the real estate developer that had a historically bad stock market year due to the rise in interest rates in 2022, takes gold for the second year in a row, with an annual value creation of 26 percent. 'VGP is surfing on the long-term trend of e-commerce, which desperately needs quality logistics real estate,” say Stan D. and Patrick Millecam, who conducted the study. “We must not forget that VGP has achieved a return on the stock market of 396.7 percent over the past ten years, including the bad stock market year 2022 (17.38% per year).”

The silver is for the fourth year in a row for chip designers MELEXIS, with an annual value creation of 22.4 percent. “Due to increasing electrification and increasing comfort and safety applications, the demand for chips in the automotive sector is increasing,” it sounds. Remarkable: the annual price increase of MELEXIS at 21.9 percent, it is very closely related to value creation.

With WDP - Warehouses with brains (16.6% per year), the bronze also goes to a logistics player. “WDP has a very strong position in the Benelux and Romania. Romania's strategic location is a real asset. The country acts as a gateway to Western Europe and Asia.” Here, too, the annual stock return (15.72%) is very close to value creation...

Disclaimer

This article was written at the initiative of De Tijd and was not sponsored by Value Square, it was taken over in its entirety.

Read the full article and accompanying table on the site of De Tijd.