Subject: Re: MorningStar Valuation
Many thanks for the Morningstar data.

I converted to an Excel file and played with it. The average (and mean) of price vs IV is 86%. The average deviation from the mean is 5%.

That illustrates a long standing question for me. If the market is truly a weighing machine, why does BRK almost always sell at a discount to IV? This happens over decades - certainly since the Gen Re acquisition. How long does it take the weighing machine to weigh?

Is there truly a conglomerate discount - whether there should be or not - that reflects continuing investor attitudes? Or do we all consistently miss some real world negative in our IV estimates? Do IV estimates just consistently look 2-3 years ahead of the market?