"The purchases are rarely at prices much better than the market average in the period. Feb 13 - Mar 6 inclusive (after the AR number date and up to and including the proxy number date) the average B share price was almost exactly $407."

Which gives approximately $610K/A-share, or 1.57x BV. The absolute lowest repurchase price that Buffett could have paid during that stretch was $590,340 (intraday on Feb 13), or 1.52x BV. If Buffett paid 1.57x BV and that price represented, say, a 7% discount to IV, then IV was 1.69x BV. If Buffett paid 1.57x BV and that price represented, a 10% discount to IV, then IV was 1.74x BV. If Buffett somehow managed to pay 1.52x BV (the lowest price possible) and that price represented only a 5% discount to IV, then the IV was 1.60x BV.

Based on repurchase prices, Buffett's estimate of IV is greater than 1.5x BV, and appears to be closer to 1.7X BV.

Berkshire Hathaway FAQ

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