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Admittedly, I'm often late to the party. But I just recently became acquainted with the book plus float (or book plus float plus 1/2 deferred taxes) method of valuing Berkshire.
I set it up in my spreadsheet some years ago, and it spits out the number each quarter I do the update (currently $299/b).
But I've never really understood why this would be a good way to value Berkshire.
Float is valuable, of course. Last reported float is $165Bn. That's a lot of optionality. It's not like its spendable money, though.
(Bonds + Cash)/Float
2010-2022
105%
92%
100%
94%
101%
99%
102%
109%
105%
111%
113%
109%
92%
Bonds + Cash occasionally dips below the float value. Then cash builds up again.
Related, from my quotes file: 2/24/2020 WEB Squawk Box: "So, we're about 80% in-- roughly in equities and about 20% in cash"
Yep. Still is. Been that way for 10 years now.
