Great read. Fond of this excerpt:
“…Book value declined from $506 billion to $461 billion in Q2 given a ~22% price drop in the stock portfolio for the quarter and ~23% year to date. I had the portfolio marked as $50 billion overvalued at yearend. The stocks are now down ~8% for the year.
With the stock portfolio decline, June 30’s book value is a better book value. Today’s market cap is 140% of June 30’s book value but lower today because the stocks are higher, as well as the progression of earning power. 1.3 to book is not always the same 1.3 to book…”