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Non-Tech : Berkshire Hathaway Class B -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (1550)3/8/2004 4:04:50 PM
From: The Duke of URL©  Respond to of 1652
 
That's the section.

What he is saying is that over the years, the disparity, or difference between the Intrinsic value and the book value is getting larger. This implies a MULTIPLE which can be applied and that multiple is getting larger.

The intrinsic value of BRK is as I am sure you know a proxy for the eventual stock market price.

This means that the real value of BRK is growing BECAUSE of its history of growing assets.

Interestingly enough, book value on warren's books IS asset value for publically traded securities. He does this by grossing up the increase and subtracting the taxes as deferred tax.



To: Jurgis Bekepuris who wrote (1550)3/8/2004 4:25:26 PM
From: Jurgis Bekepuris  Read Replies (1) | Respond to of 1652
 
BRK could have been purchased in the last couple years at the ratios from ~1.15 P/Book (February 2000) to the current ~1.86 P/Book. Most of 2001-2003 price was at ~1.80 P/Book with a drop to ~1.6 P/Book in Feb 2003 when all market dropped to nadir.

Just the facts.

Jurgis


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