If I understand what you are saying, it is book value and not price/book that is key, and that a reversal in book value indicates the buy, i.e. 2009, 2012.
I'll stick with my price/book. Price/book has dropped to become low relative to price several times according to your chart (red line touches green line). 2009 was in retrospect an easy call (easy, in retrospect -- almost everything was cheap and almost everything subsequently moved up.) 2011 was next, and several people here mentioned they were buying during that time. Maybe a couple of times 2013 offered a buy opp with red line near green (stock then moved up) . After a buy signal in early 2014, the stock did rise. So several good times to have been buy signals for BRK. My opinion, anyway.
Subsequently to early 2014, the red line stayed at or below the green line and remains there. Unusually long time. But not troublesome or worrisome for me.
For me, I'm adding to my position. I say stock will improve and p/bk will rise from its current 1.3 as it has several times. My bet is history repeats. At least I'm sort of close to Buffett management who say they're interested in buying back shares when price/book is about 1.2.
If you are using book value to make a buy decision, then you don't seem to have a data point now that indicates a reversal, so you would not be buying BRK at this time?
========
Look, we keep going 'round and 'round on this. We're just wasting time here, really. You ought by now to have concluded that after using p/bk for fifty years of stock market buying/selling, I'm not about to change. Whether I have or don't have a clue about value investing, it's useless to try to try to convince me of the error of my ways. If you are trying to convince others to your point of view or to keep offering a counterpoint to my view... you've done that many times already. |
