The downward price action since May, on absolutely no negative financial results, I believe is just a little taste of what's to come.

I just put it down to the weighing machine being awake for a while.

Relative to market, Berkshire has been sliding in price steadily since around April 14. Since then:
BRK/B -7.81%
SPY +11.54%
Relative gap 19.36%

That's a big divergence, sure, but it's not exactly a surprise that Berkshire's price was going to be weak at some point.
Price to known book was 1.759 on April 11 (!)
Book is up a bit, so the multiple is down to 1.609
Not even half way back down to the average multiple of the last 20 years.

The May slide relative to market was almost a perfect symmetrical unwinding of the striking March rise relative to market, like the grand old Duke of York.

Rationality never lasts. I'm sure lots of prices will do nonsensical things soon.

Jim

Berkshire Hathaway FAQ

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