Berkshire Hathaway Class B Message Board

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Non-Tech : Berkshire Hathaway Class B

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To: Richard Forsythe who wrote (895)	8/6/1999 10:19:00 PM
From: Michael & B.Anne	of 1652

For the past month there has been steady disciplined selling of B shares. So who is selling 1) I suspect (hope) it is not a large fund (i.e., Sequoia) or institution since they have most of their holdings in A's. And they would not arbitrage to B's at the guaranteed rate of 30 to 1 when the market has set a ratio of 32 plus to 1. 2) IMO Major seller is a single entity ? the orders match too evenly 3) so who has lots of B's - GenRe guys got lots of B's. Although recently A's have been hit too (a discouraging sign.) 3) volume (by number of orders) is on the buy side - so if/when whoever is selling is done we might start upward 4) the key will be earnings coming out next weekend .. if we can get something around $20 per B (not unreasonable) we can certainly support B's at $2500 at current P/E. 5) also, we are currently selling at 1.6 times book - compared to average for S&P of 6.4 times book and average Insurance Company of 2 plus times book. What surprises me the most is that in an uncertain and generally accepted as over extended world we are so solid, so undervalued, so well positioned for growth - and so continuously dropping in share price. Sigh :(

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