My take from Monday’s Barrons article “Berkshire Hathaway’s Valuation Hits 6-Year High. Why That’s a Bad Sign” is share price could see limited gains the balance of 2024.

“Berkshire now is trading at an estimated 1.6 times its March 31 book value, against about 1.4 times at the end of 2023 and an average of 1.4 times over the past five years.

As Edward Jones analyst Jim Shanahan wrote in a client note on Monday, Berkshire’s price/book ratio is at a six-year high. That could mean more limited gains for the stock for the rest of 2024, given that investors have long used that number as a valuation yardstick, even though Buffett has de-emphasized it in recent years. Shanahan has a Hold rating on Berkshire.“

Reluctant to sell Calls at today’s price which probably means that’s exactly what action I should take. I’ll probably take the usual course…do nothing. Ha.

Anyone have any thoughts?

Paul (still lookin for The Great OZ n KS)

Berkshire Hathaway FAQ

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