No. of Recommendations: 5
One simple explanation is that there is no explanation needed.
Berkshire's performance has been pretty much identical to the average S&P 500 stock in the last 7, 8, 9 months. It was a little weaker over the summer for a while, but that has unwound, and in any case was barely worth mentioning.
The stock prices of a few of the other very very large firms have just had a weak month, so that makes Berkshire (or any other S&P 500 stock) LOOK like an outperformer compared to a cap weight index, but it's nothing at all noteworthy.
So, the main explanation for the rising price is that (a) most prices are rising, because (b) we're still in a bull market. Lots of people are plowing fresh money into US equities regularly, and some of that money drives up the prices of almost all big firms. Berkshire is just one of them. To a large extend, Berkshire's stock price is just drifting along with the others.
Jim
