No. of Recommendations: 2
"In fact, estimating IV as a simple multiple of BV works quite well, as long as one has a logical and proven method for choosing the correct IV/BV multiple."
I wouldn't, for example, just use Bloomstran's IV/BV (1.7) or Tilson's (1.6 ) or mine (1.5) or the 15 average P/B (1.4).
Maybe use Buffett's highest repurchase IV/BV in which he bought both A-shares and B-shares. Shares in Nov '23 were purchased at 1.51x beginning BV, or 1.37x ending BV for the quarter. I keep hoping that Buffett will repurchase more stock, if only to get an idea of his conservative IV estimate. It makes a good check on our estimates. Buffett knows Berkshire's value better than anyone.
