BRK PBV in frothy territory

Divs, do you read Barron’s? Did you read this weeks mag?

I have not read the Barron’s article.
I understand Tesla much better than any of these analysts and reporters.

"Elon said: I was in the Optimus lab till midnight last night working on engineering designs (day before the earnings call).

Love it.

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Well, you certainly are confident. Most of my index funds own it so 300 plus is ok by me. Best of luck.

When it rains…

Now more than ever, there is a bigger chance the board is going to do something even more egregious by avoiding $100 B stock awards!

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Here is the solution

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You can like Tesla and like BRK. They are not mutually exclusive.

:^)

jan

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On the surface it seems yes you can like both. But I am struggling with that. The value side of me wants to own some names, and the “greedy” side of me is saying you are missing bigger gains elsewhere, of course they all come with a valuation, my “value side hates”. It is easy to say “compartmentalize” your brain, your portfolio, etc. Difficult in real life or at least for me.

PBV is 1.67. For a long time Buffett has said that BV understates intrinsic value. However 1.67 is high.

This is a good time to place aggressive covered calls and sell some BRK.

Something is wrong. The last time you posted P/BV is 1.55 and now 1.67, the price only moved up .052% and that means P/BV should move only to 1.63 and not 1.67

Separately, I think WEB had abandoned the BV with five groves method.

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The PBV is from the tool I use. It is accurate.
As the price fluctuates PBV will change as well.

Hence I provided the calculation. It cannot be accurate and the math is wrong. Making math errors on a flawed/ useless measurement doesn’t make it “accurate”, i.e., a mistake on a mistake doesn’t make it right. :slight_smile:

What is the current PBV for BRK you have ?

The price went from 367 to 405. That’s a 10.4% increase.

That’s not the point. The point is the price and P/BV you mentioned at the first post on this thread and the one you posted recently, they don’t align with the price movement. That’s just 27 days, fairly straight forward math, which is wrong.

Thanks, for some reason I used $385 as the starting price. That explains. My bad.

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PBV now 1.72

Someone is angry at my S&P vs BRK comparison and fixing the underperformance in a hurry.

LOL

Remember, when a stock is at ATH, you don’t sell, if you want to hedge buy a put, don’t sell covered call. Swings on both direction go further than you think. We all make this mistake, I have sold so many since December, all have moved up by another 20% or 25%. :frowning: Live and learn.

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Agree. I have several covered calls for leaps (UBS, DIS, BRK, TQQQ, SWAV etc) that have passed their strike price. All good returns but could have been great.

I have moved some BRK covered calls out but at this point I am thinking I am going to let them be called at $410. They are in non taxable account.

This is precisely why I prefer selling puts rather than selling covered calls. If I sell covered calls, eventually that nice stock is going to be called away from me. My reasoning is as follows - it’s a nice stock and I like owning it, I wouldn’t mind terribly owning some more of it (at the right price), so I sell puts at that price, sometimes they expire worthless (so I made a tiny bit of money, like a dividend of sorts), and sometimes they get exercised so I own a little more of that nice stock. I don’t have my spreadsheet in front of me right now, but I sold various BRKB puts (in the low to mid 300s as I recall) over the last year, and at least once they were exercised against me. So big deal, I own some more of it after that. The reasoning is essentially that good stocks tend to go up over time, so the bias would be more towards calls being exercised (and me losing that nice stock) than towards puts being exercised, at least most of the time.

[EDIT: Now I have my spreadsheet handy. Last time I was assigned for BRKB was on 3/20/23 for the March 17th 305’s. The rest of them last year expired worthless … because the stock kept going up up up.]

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Sold some BRK from my non taxable account.
PBV ~1.7 and price of $420 is frothy territory.

Bought more AAPL 2026 leaps with that money.