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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Texirish ✹  😊 😞
Number: of 22353 
Subject: Re: MorningStar Valuation
Date: 02/20/23 5:18 PM
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No. of Recommendations: 7
Many thanks for the Morningstar data.

I converted to an Excel file and played with it. The average (and mean) of price vs IV is 86%. The average deviation from the mean is 5%.

That illustrates a long standing question for me. If the market is truly a weighing machine, why does BRK almost always sell at a discount to IV? This happens over decades - certainly since the Gen Re acquisition. How long does it take the weighing machine to weigh?

Is there truly a conglomerate discount - whether there should be or not - that reflects continuing investor attitudes? Or do we all consistently miss some real world negative in our IV estimates? Do IV estimates just consistently look 2-3 years ahead of the market?

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This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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