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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
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Author: mungofitch ✹🐝🐝🐝🐝 SILVER
SHREWD   😊 😞
Number: of 15062 
Subject: Re: Thinking of BV multiple for BRK as a function of i
Date: 02/07/2023 10:20 AM
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No. of Recommendations: 13
It depends on *how* you think Berkshire will increase book value.

By purchasing investments, or by running wholly owned operating companies, or a mix?

If it's the former, then yes, fair P/B would approach 1. It would asymptotically approach being a closed end investment fund.

If it's the latter, then fair P/B should approach the typical large firm's P/B.
If a dollar of retained and deployed capex at XYZ company is valued at (say) twice book because of its expected future earnings, why not the same at Marmon?

If it's a mix, as it is now, then it's in between the two. As it is now.

Jim
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