Barron’s take on Berkshire and Apple:

The Apple gain added $11 billion to the value of Berkshire’s equity portfolio Tuesday before any tax adjustment, or more than 1% of Berkshire’s market value of around $883 billion. So why didn’t Berkshire stock move higher?

Berkshire doesn’t perfectly correlate with Apple, and financial stocks were off 1% Tuesday and Berkshire is the largest financial company in the S&P 500. Berkshire could have been depressed if investors sold the Financial Select Sector SPDR of which Berkshire is the largest component.

Barron’s estimates that Berkshire’s quarter-end book value will be about $420,000 per class A share, a record, assuming no change in stock prices before June 30.  Book value stood at just under $400,000 per class A share on March 31.

Berkshire now trades for about 1.45 times our June 30 book value estimate, down from a peak of over 1.6 times in late February when the A shares peaked at around $650,000. Berkshire stock is now trading close to its average price/book ratio of 1.4 over the past five years and for about 21 times projected 2024 earnings per share. 

https://stocks.apple.com/AeDNpnq9qSfGYsUxoqokxfg

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