Post #10591 by rayvt on the Berkshire Hathaway board

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

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"I think you’ll get as many opinions as there are contributors."

That's for sure. More opinions actually, since most of us use multiple valuation models.

My preferred model uses book value. Berkshire's stock price tracks sales, operating earnings and net earnings, but it tracks book value the best.

Or just ride on the coattails of others. Buy a solid company whose stock has recently hit a high and is still near that high.

Extrapolating BV or P/B or P/S or P/E is just a way of bedazzling yourself with numbers. Just because you can measure something doesn't mean that you can predict with it.

In the end, though, it all adds up to book value.

Not at all. In truth, in the end it adds up to other people buying the stock thereby increasing demand. For us little investors at any rate.

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