Subject: Re: Buffett Premium
All you say was true too when Berkshire traded far higher --- nevertheless it did trade far higher. So what for you (or us) makes sense is irrelevant, at least short-term. Momentum - in whatever direction - is not about rationality, it's about emotions. Therefore re your "I expect a slow grind down to 1.35x book value" I wouldn´t be surprised if at some point it would be clearly lower than that.