Shoreline_
Well-known member
Even the stock price is crazy expensive lol. That's more than Google.
Did we know Snapon sells for 400 a share?
- Thread starter Shoreline_
- Start date
mike93lx
ALLIANCE MEMBER
Wait til you see what a class a share of Berkshire Hathaway costs.
Comparing stock prices is like comparing different ropes based on their length. Not very useful
OP
Shoreline_
Well-known member
Berkshire Hathaway class b which is what you and I can buy is only 100 more expensive than Snapon and Berkshire Hathaway is Buffets brain child not a tool manufacturer.
mike93lx
ALLIANCE MEMBER
Wow, that changes everything.
Would snap on stock be more special if they did a reverse split? Or less special if they split?
Junkman
Well-known member
In 2022, when it was in the low $200s, I looked at it and decided it wasn't worth investing in. Now, in 4 years, it has doubled, and it definitely isn't worth buying. Its dividend isn't enough to get excited about (2.39%).
logical
Well-known member
That really means nothing...but maybe you know that, Snap On has about 50 million shares outstanding and Alphabet/Google about 12 billion shares outstanding. So about $21 billion vs $4.3 trillion in market cap.
Miss the Pontiacs
Well-known member
BRK.B appears to pay no dividend
SnapOn pays about a 2.5 % dividend.
SnapOn pays about a 2.5 % dividend.
Don't look at the AutoZone stock price if you think $400/share is expensive...
Try over $3,000/share!
MileHighRover
Well-known member
- Joined
- Mar 13, 2018
- Messages
- 1,158
September of last year it hit $4,354 a share.
September of last year it hit $4,354 a share.
Wow, that's a big drop. Crazy price either way.
Miss the Pontiacs
Well-known member
You want crazy?
As others above said comparing absolute stock price of one company vs another is pretty meaningless without looking at other metrics. Number of shares outstanding is certainly one. Snap-on could easily split shares to make its share price seem more affordable but in reality nothing will have changed. For example double number of shares outstanding and lower share price by half. An investor who had 10 shares at $400 suddenly has 20 shares at $200. Either way his investment is $4,000.
Its more useful to look at multiples of earnings or sales (or any other metric you are interested in) when comparing stock price of one company vs another. In your Snap-on vs Google example Snap-on is trading approx 20x trailing earnings vs 16x for Google. So Snap-on does appear to be more expensive per dollar of earnings vs Google which is somewhat surprising. But the devil is in the details so they say. Google took a one time non-cash mark to market adjustment that inflated its earnings (accounting adjustment) and significantly lowered its P/E multiple which had historically been about same as where Snap-on is currently trading (about 20x TTM P/E).
If you compare to sales the script flips with investors paying approx 4x sales for Snap-on vs 9x sales for Google. From that viewpoint Snap-on on looks much cheaper. But does it really make sense to compare a tool manufacturer to tech company? Google almost certainly generates higher margins on each dollar of sales than Snap-on. Investors know this and price shares accordingly.
Dividend yield is another useful metric. As stated Snap on pays a dividend so buying a share at current price will generate approx 2.4% income as long as dividends continue at current rate of approx $9.75 per share (per year). Google only pays $0.88 per share so investor only generates about 0.25% annual yield if that's what is important to him.
Point really is just saying one company share price is $400 vs another $300 isn't that useful.
Its more useful to look at multiples of earnings or sales (or any other metric you are interested in) when comparing stock price of one company vs another. In your Snap-on vs Google example Snap-on is trading approx 20x trailing earnings vs 16x for Google. So Snap-on does appear to be more expensive per dollar of earnings vs Google which is somewhat surprising. But the devil is in the details so they say. Google took a one time non-cash mark to market adjustment that inflated its earnings (accounting adjustment) and significantly lowered its P/E multiple which had historically been about same as where Snap-on is currently trading (about 20x TTM P/E).
If you compare to sales the script flips with investors paying approx 4x sales for Snap-on vs 9x sales for Google. From that viewpoint Snap-on on looks much cheaper. But does it really make sense to compare a tool manufacturer to tech company? Google almost certainly generates higher margins on each dollar of sales than Snap-on. Investors know this and price shares accordingly.
Dividend yield is another useful metric. As stated Snap on pays a dividend so buying a share at current price will generate approx 2.4% income as long as dividends continue at current rate of approx $9.75 per share (per year). Google only pays $0.88 per share so investor only generates about 0.25% annual yield if that's what is important to him.
Point really is just saying one company share price is $400 vs another $300 isn't that useful.
CGarage
Well-known member
Growth would also be one of the most important metrics for investors, but yeah you summed everything up nicely.
Do any of us here see Snap on significantly growing their market share, increasing revenue, net income, etc?
Now look at google, their segments are still growing significantly which is wild given the size.
• Google Services revenues increased 15% to $94.5 billion, led by 17% growth in Google Search & other,
15% in Google subscriptions, platforms, and devices, and 13% in YouTube ads.
• Google Cloud saw a meaningful acceleration in growth as revenues increased 82% to $24.8 billion, led by
an increase in Google Cloud Platform (GCP)
• Consolidated Alphabet operating income increased 30% and operating margin expanded by 2 percentage
points to 34%.
Snap on is an defensive/industrial, google is a tech giant and somehow still growing aggressively. Apples to oranges.
Lassen Forge
Well-known member
None of Berkshire Hathaways stocks (.a or .b) pays dividends; they instead re-invest those to themselves. Last B-H paid a dividend was waaaay back in 1967.
Another factoid - they actively discourage selling their stock. You may have 20 shares of brk.a stock (a bit over $15 1/2 million) but the only way you see a return is using it as collateral, making you a paper millionaire. Plus would you want to pay those capital gains taxes anyway? Ugh!!!
d.mcfarland
Well-known member
Maybe, maybe not.
Don't quote me on this but I believe Charlie Munger even admitted that value investing, which is what Berkshire was built on, just won't happen the way it has in the past.
Now I would consider Berkshire no different than a holding company. Buy beaten up companies, reorganize them / merge / divest, sell and get out.
YesIHaveAHammer
Well-known member
- Joined
- Jun 1, 2025
- Messages
- 940
What proportions of Snap-on profits come from tool sales vs. financing?
KnurledNut
Well-known member
CGarage
Well-known member
mike93lx
ALLIANCE MEMBER
You only have 20 shares? Is that few normal?
I agree. I used to work for two guys that built their fortunes heavily influenced by Berkshire Hathaway and Warren Buffet. They eventually partnered with Berkshire on certain investments. From my understanding Berkshire's operating subsidiaries are still heavily invested in companies that provide goods and services for that everyday consumers buy and use everyday. They built their business and are still heavily invested in the insurance industry. Companies like GEICO and Gen Re. Believe they own Fruit of the Loom and Benjamin Moore in addition to many, many more significant companies that are leaders within their respective industries. As far as portfolio investments companies like Apple, Coca Cola, American Express and Bank of America make up their top holdings. Believe Buffet avoided companies he didn't understand and preferred deals that provided core goods and services to everyday consumers. Don't believe buying up distressed assets and divesting them is a large part of what Berkshire is today.
Lassen Forge
Well-known member
It seemed like Warren sold those which he realized later were a mistake, or that no longer were true to their purpose or changed substantially to where the core reason for investment no longer existed. He had an interesting philosophy on investing - buy into companies that the people will continue to use - and it never failed him.
I'm curious to see where it goes now that he's retired from the business. Although holding a controlling intrest of it makes me wonder if you ever REALLY retire from that...
I'm curious to see where it goes now that he's retired from the business. Although holding a controlling intrest of it makes me wonder if you ever REALLY retire from that...
mike93lx
ALLIANCE MEMBER
A person like buffet will not stop until he dies. There's no retiring at that level of skill and celebrity
rust in the eye
Well-known member
I don't think any of Snappy's execs are living this guy's lifestyle.So, Harbor Freight is really not eating Snap On's lunch.
/s
LA Philanthropists Donate $25 Million to LACMA | artnet News
Eric and Susan Smidt weren't born into wealth, so they use their self-made millions to give back to their community and support the arts.
news.artnet.com
Behind The Yacht on Instagram: "Harbor Freight Tools started in 1977 as a small mail-order business founded by Eric Smidt and his father. Over the years, it’s grown into a huge retailer with over 1,300 stores across the U.S., offering affordable tool
989 likes, 116 comments - behindtheyacht on September 10, 2024: "Harbor Freight Tools started in 1977 as a small mail-order business founded by Eric Smidt and his father. Over the years, it’s grown into a huge retailer with over 1,300 stores across the U.S., offering affordable tools. Known for...
www.instagram.com
Last edited:
jblnut
ALLIANCE MEMBER
20yrs ago the owner of the company I worked for offered us a $2000 “cash” bonus or $4000 in stock in whatever company or companies we chose. I split it 75/25 between Apple and Google. I do not regret that decision other than I should have had it all go to Apple. Talk about a heck of a bonus.
I think most tech companies are a fairly safe bet with industry and manufacturing being a close 2nd in most cases.
I think most tech companies are a fairly safe bet with industry and manufacturing being a close 2nd in most cases.
If HF had public stock it would compare to SO but be 60% less.So, Harbor Freight is really not eating Snap On's lunch.
/s
d.mcfarland
Well-known member
They would just copy everything Snap-On does...
SO CEO gets $10MM year in cash and prizes.I don't think any of Snappy's execs are living this guy's lifestyle.
LA Philanthropists Donate $25 Million to LACMA | artnet News
Eric and Susan Smidt weren't born into wealth, so they use their self-made millions to give back to their community and support the arts.Behind The Yacht on Instagram: "Harbor Freight Tools started in 1977 as a small mail-order business founded by Eric Smidt and his father. Over the years, it’s grown into a huge retailer with over 1,300 stores across the U.S., offering affordable tool
989 likes, 116 comments - behindtheyacht on September 10, 2024: "Harbor Freight Tools started in 1977 as a small mail-order business founded by Eric Smidt and his father. Over the years, it’s grown into a huge retailer with over 1,300 stores across the U.S., offering affordable tools. Known for...
He probably doesn't have to shop at Harbor Freight.
CGarage
Well-known member
That’s correct— Damn Right. And I would take your post a step further and say that Charlie encouraged Warren to buy good businesses and pay a fair valuation for them, and then hold them indefinitely— “our favorite holding period is forever”, is one of Warren’s favorite quotes.
It should be remembered that Charlie was the “architect” of Berkshire Hathaway, but was highly private, and Warren viewed himself as the general contractor, executing Charlie’s designs for the holding company of sorts.
They are not a Cerberus Capital type of organization, buying distressed businesses and re-structuring them to profitability and then reselling.
d.mcfarland
Well-known member
I don't think any of Snappy's execs are living this guy's lifestyle.
LA Philanthropists Donate $25 Million to LACMA | artnet News
Eric and Susan Smidt weren't born into wealth, so they use their self-made millions to give back to their community and support the arts.
And to be fair, art is probably the #1 money laundering activity in the world. He isn't doing it out of the goodness of his heart.
mike93lx
ALLIANCE MEMBER
His own publicist must have written that. "Self made millionare".I don't think any of Snappy's execs are living this guy's lifestyle.
LA Philanthropists Donate $25 Million to LACMA | artnet News
Eric and Susan Smidt weren't born into wealth, so they use their self-made millions to give back to their community and support the arts.Behind The Yacht on Instagram: "Harbor Freight Tools started in 1977 as a small mail-order business founded by Eric Smidt and his father. Over the years, it’s grown into a huge retailer with over 1,300 stores across the U.S., offering affordable tool
989 likes, 116 comments - behindtheyacht on September 10, 2024: "Harbor Freight Tools started in 1977 as a small mail-order business founded by Eric Smidt and his father. Over the years, it’s grown into a huge retailer with over 1,300 stores across the U.S., offering affordable tools. Known for...
Who made him a millionaire?His own publicist must have written that. "Self made millionare".
mike93lx
ALLIANCE MEMBER
His dadWho made him a millionaire?
He gave his son a million dollars?
Debcrow
Well-known member
Never looked at Snap On stock....
Do they have an SOa and a SOB stock?
If I bought it, it would probably be SOL stock!
Do they have an SOa and a SOB stock?
If I bought it, it would probably be SOL stock!
Last edited:
mike93lx
ALLIANCE MEMBER
He "founded" harbor freight with his dad at 17 and was president at 25. Self made? Ha
MileHighRover
Well-known member
- Joined
- Mar 13, 2018
- Messages
- 1,158
But isn't the son the reason HF is as successful as it is today?
mike93lx
ALLIANCE MEMBER
You're talking about things that happened well after becoming a millionaire.
He got in a business with his Dad, which automatically made him a millionaire?
Wish I'd got that memo.