No. of Recommendations: 8
"As usual, my 5-groves spits out a lower number: $460-$480
Look through: $470
Shareholder Equity + Float + 1/2 Deferred Taxes: $424
Book value: $332.55"
Just to add another valuation model, the weighing machine model gives a year-end IV of $770K/A-share, or $513/B-share, +/- a few percent uncertainty like all models.
I don't know anyone else who uses this model, so do with it what you will. Personally, I think it makes perfect sense that price and IV should track metrics such as sales, earnings and BV. Berkshire's market cap has tracked BV almost perfectly over the last 60 years (r^2 = 0.98). In my opinion the trendline of price versus BV provides a reasonable estimate of IV at any point in time over that period.
