Invite ye felawes and frendes desirous in gold to enter the gates of Shrewd'm, for they will thanke ye later.
- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 5
The IV estimate as of Jun 30 using the weighing machine method is $731K/A-share, or 1.54x BV. In the weighing machine model IV is taken to be the trendline of price versus BV (log-log) over a long period of time, in this case 60 years. Both the high and low price for the quarter are used for the regression, and the r^2 is 0.976.
This IV estimate is slightly lower than that by the stock repurchase model, which uses the highest P/BV paid as the IV estimate, or 1.57x BV.
FWIW
No. of Recommendations: 9
A few others:
Jim yesterday: "Looking at a hand full of valuation metrics and the relationship they have had to market price per share in the past, looking at 20 years of prices and value metrics suggests that, if the price today were at the average level seen since then, the various metrics would suggest a price today of about $405-435 per B share. Note the "if"--that isn't a prediction, at best just a sense of scale."
My 5-groves (always optimistic until the last couple of years):
5 Groves 15x Op. earnings, 30% of float ($51B) deducted from cash, underwriting profit at 1.4% of float
$430
Shareholder Equity + Float + 1/2 Deferred Taxes:
$399
Book value:
$309.64
Last repurchase of B shares:
November 2023, $347 (1.47x Last book value)
No. of Recommendations: 3
and another, from Morningstar:
"With narrow-moat Berkshire's second-quarter operating results essentially in line with our expectations, we expect to maintain our $730,500 ($487) per Class A (B) share fair value in place and view the shares as slightly undervalued."
