Subject: Re: 420
Jim,
I agree with the rationale for why your approach makes sense for estimating intrinsic value. I am not putting up an argument there because it seems prudent for a conservative estimate and a good way for a value investor to gauge tracking.
But it’s not the same as a market based sum of the parts valuation, which would have swings north and south of that estimate (agree your method is steadier). But BRK has traded at a discount to the market based view of appropriate multiples and has done so for a long time.