Post #5264 by Web436 on the Berkshire Hathaway board

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

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Most of the models use data only since 2008--the "modern era" of valuation multiples.

I would argue that this valuation model may be flawed.
The low interest rate environment since the great financial crisis lowered the valuation of the insurance float. If interest rates remain more normalized (think like 1995 to 2005), Float is way more valuable and thus BRK should trade at higher P/B ratios. 5% on the float sure is nice compared to near zero since 2009.

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