Berkshire is cheap as can be. 1.25x book!
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Replying to @Molson_Hart
PE is pretty meaningless for Berkshire because unrealized gains/losses in its stock portfolio are included in net income.
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Replying to @FiveAcesCapital
Thanks! Is that a significant portion of net income? Why would that make it meaningless? Sounds like earnings to me, but I'm very inexperienced as a public stock picker...very.
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Replying to @Molson_Hart
Over time, their stock portfolio should produce gains but the mark-to-market gains or losses over the short-term make net income more or less useless. Book value is a crude measure of value but a good reference point!
1 reply 0 retweets 2 likes
Is there some reason why brk.a's pb is so low? New accounting rules affected them a lot.
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