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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
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Author: AdrianC ⎊  😊 😞
Number: of 12641 
Subject: Re: IV by the repurchase method
Date: 11/14/2023 10:33 AM
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(Sorry, rrr12345, I think my first reply went to your email and not to the board. Meant it for the board.)

Warren's conservative estimate of IV can be inferred from his stock repurchases. Berkshire makes fewer repurchases when the P/B is higher, and it has paused repurchases altogether when the P/B is too high, as in April and May of 2022. The highest price/beginning book for the quarter that Warren has paid is 1.49 (which he paid in November 2022), and the highest price/ending book for the quarter that Warren has paid is 1.51 (which he paid in September, 2023). Warren has said that he would not repurchase stock at a "mere" 5% discount to IV, so his repurchase at 1.51 times BV implies an IV of at least 1.59

I don't know that much can be inferred from stock repurchases, other than there is excess cash and the price is within a zone of reasonableness.

The last 2 quarters they've bought more when the price has gone up (though only by single digit %).

2023 #A Price A
Apr 177 $472,004.70
May 238 $493,507.36
Jun 627 $506,476.84

Jul 177 $521,430.04
Aug 607 $541,740.69
Sep 1115 $550,813.96
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