While I greatly value and appreciate all the BRK valuation discussion on this board, I would urge investors to refrain from parsing valuation too closely.
If there is one thing to be learned from the past several years, it’s that Mr. Market can throw out quotes that are absolutely insane on the upside, once momentum and FOMO takes hold.
Who would ever thought that Bitcoin, a made up currency would be worth $60,000 EACH, when anything over zero is too much? Or the endless number of stocks with ZERO EARNINGS EVER that were and are trading for tens of billions of dollars? Or that a 3 year old Pat Mahomes trading card could be worth over $3,000,000?
Keep in mind that BRK owns more plant and equipment, REAL ASSETS, than any other publicly traded U.S. firm. Many of which are irreplaceable at any cost! This company is uniquely positioned for an inflationary environment.
If you are a long term shareholder that has sat for MANY, MANY YEARS, watching BRK underperform the averages, often looking like the “stock is broken”,don’t get shaken out of your position NOW, just because the shares may be 25% over what you deem them to be worth. Warren doesn’t operate that way and neither should you.
Sit back and enjoy the ride, it may have only just begun!