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Stocks B / Berkshire Hathaway


Subject:  Re: Still cheap at 4 year high Date:  10/4/2012  1:09 PM
Author:  mungofitch Number:  194639 of 218950

Hey, rational--

Remember that long flat spot Q4 2006 through Q2 2007 that Berkshire traded at almost exactly $110000?
What would (did) you peg fair value at at say end Q2 2007?

I'm just realizing how much my views appear to have changed. Dumb anchoring, or newfound wisdom?
I was convinced the the $110k was getting more and more preposterous, loading
up like an overwound spring, based on the idea that firm was worth maybe
$135k+ back then, the range in which I started lightening up later in the year.
But that figure represents 1.9 times the end-Q2 2007 book.
In December I noted that the "expected" price based on long run historic average
price to IV ratio would suggest one should