Does anyone know what kind of percentages book value has dropped in previous downturns?
My thinking is along the lines of after the GFC, was Berkshire trading at say 1 x written down book or 1 x historic price to book?
My thinking is along the lines of after the GFC, was Berkshire trading at say 1 x written down book or 1 x historic price to book?
This is a FAQ. BRK has traded below 1x book but only very briefly. Anything under 1.2x book is a strong buy signal (ie: forward returns from that level are typically very good). Anything above 1.5x book is a weak sell signal.
tecmo
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Thanks but I wondered is the price related to historic book or written down book.