Post #3125 by rrr12345 on the Berkshire Hathaway board

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

Unthreaded | Threaded | Whole Thread (1)

Post Reply | Report Post | Recommend It!

No. of Recommendations: 7

Buffett's estimate of IV can be inferred from the number of shares that he repurchases during a quarter. Plots of A-share equivalents repurchased against the beginning P/B for the quarter and against the ending P/B for the quarter show definite downtrends, although with considerable scatter, and also show the highest P/B at which he has been willing to repurchase stock. The highest P/beginning-book is 1.49, and the highest P/ending-book is 1.48. The question is whether 1.48 and 1.49 represent 5% discounts to his estimate of IV or 10% discounts to his estimate of IV. Decide for yourself. Buffett has stated that he would not repurchase stock at a 5% discount to his estimate of IV, but would buy back significant amounts of stock at a 25% or 30% discount to IV.

Print the post

Post New

Unthreaded | Threaded | Whole Thread (1)

Prev | Next

Announcements

Berkshire Hathaway FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.