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 (454)	1/21/1999 6:22:00 PM
From: Richard Forsythe	Read Replies (1) of 1652

Thread, Interesting development in BRK/B today. Prior to 12/18/98, the average daily volume for BRK/b was 8600 (that is, the average of volumes between 1/21/98 and 12/17/98 inclusive). The average daily volume from 12/18/98 to 1/20/99 was 2.98m; and on no trading day did the volume fall below 1.5m in that period! Today, the volume of BRK/b was just 22630 -- reverting to the pre-closing-announcement pattern. I am guessing that index funds (and whomever else still had GRN), who had large amounts of brkb, started selling on 12/18, spreading their divestment over many trading days to reduce volatility. It seems (and you can watch the volume pick up tomorrow to prove me wrong) that the selling has stopped (at least in a big way). While there are probably many people out there waiting to receive their BRK before selling, I would guess that the bulk of the institutional selling is over. Given that the stock has declined by 20% in a period when technology stocks have risen strongly, it would seem that BRK is now a strong buy! Does anyone have any share and earnings numbers for the newly merged company? My very rough calculations of a "look through" PE show that it is somewhere between 35 and 45 (perhaps lower) -- making the stock relatively inexpensive compared to other good growth stocks right now. For the record, I nibbled BRK/b yesterday and took a larger bite today! Richard

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