No. of Recommendations: 2
It's an interesting question. Paraphrasing:

Book value has lost the relevance it once had because:

1. Berkshire has morphed from marketable stocks into operating businesses.

2. Those operating companies' book value is below their intrinsic value, so therefore

3. Repurchases will take place at prices above book value but below our estimate of intrinsic value.

Even though BRK favors businesses that are more about established markets and less about promising futures (Finally an Apple now, but never anything like Amazon), book makes less sense when a free market is not setting that book value.

The most interesting thing about the annual letter that just came out is that Mr Buffett proposes a rather different way of valuing the firm, which is certainly pretty simple

I'd be very interested to see what you might come up with there, Jim.
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