Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
 Best Of BRK.ABest OfAll BoardsThe Shrewd’m Weekly ¤Learn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of BRK.ABest OfAll BoardsThe Shrewd’m Weekly ¤Learn to InvestHow to Become Shrewd

The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", sykesix asked the members: "What do you do if you arrive early at movie besides go to the snack bar?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
Unthreaded | Threaded | Whole Thread (11) |
Author: Texirish ✹  😊 😞
Number: of 22990 
Subject: Re: MorningStar Valuation
Date: 02/20/23 5:18 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 7
Many thanks for the Morningstar data.

I converted to an Excel file and played with it. The average (and mean) of price vs IV is 86%. The average deviation from the mean is 5%.

That illustrates a long standing question for me. If the market is truly a weighing machine, why does BRK almost always sell at a discount to IV? This happens over decades - certainly since the Gen Re acquisition. How long does it take the weighing machine to weigh?

Is there truly a conglomerate discount - whether there should be or not - that reflects continuing investor attitudes? Or do we all consistently miss some real world negative in our IV estimates? Do IV estimates just consistently look 2-3 years ahead of the market?

Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to Texirish here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 22,499 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
Unthreaded | Threaded | Whole Thread (11) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Ticker or Board Name Author

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community | Privacy