Hi All,

Just to follow along with my calculations and making sure I do this correctly, I find that the current book is in fact the peak book.

1: Berkshire Hathaway shareholders' equity = 539883 M$ (2nd quarter, p. 3)
2: On an equivalent Class A common stock basis = 1,447,541 (as of 30-Jun-2023, p. 25)
3: Book Value per A share = 539883 / 1.447541 = 372965.60
4: Book Value per B share = 372965.60 / 1500 = 248.64

If I look at today's price (358.48), then the price per peak book = 358.48/248.64 = 1.442, which looking at the table from Jim's post at: http://www.datahelper.com/mi/search.phtml?nofool=y... looks like its on the boarder of 7.8% and 5.1% forward returns. Alternately looking at his formula:

Forward Real Return = 0.01550203*PB^3 + 0.28840172*PB^2 - 1.36877657*PB + 1.38544636 = 0.0571 or 5.7%

Given some cash to put into the market, it seems like now might not be a great time to add to BRK. Thoughts?

--G

Berkshire Hathaway FAQ

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