Post #18488 by mungofitch on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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Berkshire share is down 7.2% in that short stretch.
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Could this be due to BRK position in Japan and concerns about currency exchange with US dollar?

Anything is possible, but that reasoning doesn't really work for those who really pay attention. Berkshire's position in the Japanese firms is fully hedged. i.e., Berkshire has an amount of yen debt that equals the position size so Berkshire gets the yen price change but in US dollars.

Besides, I can't ever recall any meaningful correlation between big moves in big Berkshire positions and the move in Berkshire's stock price. The most remarkable example was that Berkshire's price and Apple's price were most often negatively correlated during the era that the Apple position was particularly huge. Forget look-through value, it was all about traders seeing one risk-on company and one risk-off company.

Jim

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