Subject: Re: Thinking of BV multiple for BRK as a function of i
It depends on *how* you think Berkshire will increase book value.

By purchasing investments, or by running wholly owned operating companies, or a mix?

If it's the former, then yes, fair P/B would approach 1. It would asymptotically approach being a closed end investment fund.

If it's the latter, then fair P/B should approach the typical large firm's P/B.
If a dollar of retained and deployed capex at XYZ company is valued at (say) twice book because of its expected future earnings, why not the same at Marmon?

If it's a mix, as it is now, then it's in between the two. As it is now.

Jim