Subject: Re: Annual report
My P/E of 20 ish is derived from a small benchmark exercise.

The 23.1 BB is a combination of 3 industries.

Approximately 25% Rail, 15% Utility, & 60% service.

When I look at the other 3 large rails they have an average P/E of 24.8? Wouldn't we be similar. i understand that a pending merger is influencing one of them, but the lowest of the group is 23. That is what the market thinks they are worth?

Utilities similar story. You may not be willing to pay up, but the market is paying 20+ P/E for Utilities in the current market.

That leaves service. For that I use 17+ for a p/E.

I wondered how you got to 20.1. Makes sense now.

For me, the purpose of the exercise is to come up with an IV estimate that would be a decent buy for a long-term hold. I'm not interested in paying 20x, and it's clear that Berkshire isn't, either.