No. of Recommendations: 5
"Reluctantly, and with respect for Bloomstran and others who choose $87B, I'm going with Buffett at $49B. This reduces my estimate of IV from $720K/A-share (1.56x BV) to $695K/A-share (1.51x BV), a reduction of 3.2%."
My IV estimate of 1.56x BV was based on Berkshire's share repurchases:
Date, Price paid/beginning BV for quarter, P/ending BV
FEb '24, 1.595, 1.562
Mar '24, 1.601, 1.567
Apr '24, 1.561, 1.482
Oct '24 issue of B-shares as part of the purchase of Walter Scott family estate's BHE shares, 1.565x Sept 30 BV
It looks like Buffett valued Berkshire stock at about 1.56x BV at the time he bought BHE shares in October, so maybe I don't need to reduce BRK's IV based on the reduced price of BHE. I keep going round and round on this. Sorry. We'll find out when Buffett next repurchases shares. That may not be soon, as BRK-A is currently selling for 1.67x BV.
I'll try to sign off on this question now. I think we all want to know what Berkshire's IV is, and what it's IV growth rate will be in the coming years. Thank you for your patience and your input.
