“What would be your plan if the stock was trading at 1.2x book?”

Good Question, tecmo. I’d sell something else if BRK is at 1.2x book, probably AAPL or SPY which are our similar #2/3 positions.

We now need to generate cash for life expenses as we are now in the early draw down phase and solely living off equity investments. We own only minimal dividend payers.

BRK still represents 2/3 of our total investment assets. Our plan is to “conservatively” annuitize the Berkshire position based on its “true” valuation (as Jim has generously shared his commentary in the past). We hope not “touch” the principal.

Btw, as I recall, Jim said on average you could have sold off 6% annually based on his data and still not have touched the principal, but I highly doubt we would draw down that much consistently. We’re not fans of selling and generating LTCG!

Berkshire Hathaway FAQ

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