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Author: mungofitch Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 227253  
Subject: The price Date: 12/3/2007 11:37 AM
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Not that I'm complaining, but can anyone thing why a lot of little
Mr Markets have decided that really want to own some Berkshire shares in
the last couple of months?

The odd thing is that most of the portfolio companies haven't done that
well by comparison, so presumably it's a rational revaluation of the
subsidiaries, or an irrational price move. Or just some catch-up.
Since the first trading week of August:
BRK +31.4%
USG -7.6%
WFC -7.0%
Amex -2.9%
WPO +0.1%
BNI +2.7%
WMT +3.2%
KFT +5.5%
JNJ +10.4%
KO +16.5%

The ratio of price-to-intrinsic value for Berkshire is now about
about 8.2% above its long run average ratio, by my calculations.
At the historical average ratio (average discount) the expected price
today would be around 131500, rather than 142500 right now.

I have substantially lightened up my position, on the expectation that
I can buy back in at a lower price at some point. Of course,
I may be entirely incorrect about that.

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