Post #7038 by Said on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

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Update: Jim, looking closer why our charts deviate I think you made two mistakes:

- BRK-A price in 2000 in your chart is 100000, a price it reached only 7 years later. Neglectible, as absolute prices are not interesting in this context.

- take that WMA and multiply by 1.50. Why 1.50? I looked for the multiple that gave the best fit to price data ......The best fit result was a multiple of 1.5004 times the weighted moving average of real book.
Jim, I think you used not 1.5 but 1.7. Why? Because contrary to the chart resulting when using 1.5 (see the link I posted in my previous post) if using 1.7 my curve now indeed closely resembles yours (apart from mine being updated until 1.April 2024, the currently last quarterly data point):

https://drive.google.com/file/d/1orBMiXDlV5qRliy-W...

So BRK's price correlates best with 1.7x the greater of "Real BV" and "90% of Peak Real BV".

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