People jumping in because FOMO?

One theory
(1) People jumping into the broad US stock market because FOMO
(2) BRK rising because it's glued into the cap weight funds they're buying

Berkshire's price has risen almost precisely as fast as the average S&P 500 firm in the last 6 or 12 months. An even closer match with the insurance industry, e.g. KIE. So maybe Berkshire's strong price has nothing at all to do with what people think of Berkshire as such.

The possible corollary that springs to mind is that not all of Berkshire's price rise is "intrinsic"---some may unwind for a while if the broad market decides to have a bad stretch. But not right away, probably: statistically, it's very rare to see a meaningful and lasting market drop soon (even up to a few months) after a fresh recent high.

Jim

Berkshire Hathaway FAQ

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