The value of BRK is not meaningful for the next few years.
That is a wildly incorrect statement, LOL
There is nothin worthwhile about investing in BRK for the short term.
There will be an opportunity to get into BRK at a much better price.
I’m glad you have such confidence in your crystal ball, mine is cloudy. While I think it likely the market, and BRK, will continue lower, I am far from certain.
What I am certain of is that this is a significantly better than average entry price/value for BRK and prospects for a good long term return from this price are excellent.
I played that game of thinking I’d get a better price back in 2020, I was wrong and I missed a roaring recovery and advance to new highs while I was in cash waiting for the stock market to fully reflect the severe global Covid recession. So I’m trying to buy and hold stocks for their value in the long term rather than trying to predict how low they’ll go or to time the market.
Almost all of its assets are in other companies, some public, some private, some wholly owned, some not wholly owned. Companies like GEICO, Apple, Coca Cola, BNSF Railway, Lubrizol, Occidental Petroleum (they just bought more recently), Sees, Krat, Netjets, etc.
On Jun 23, 2022, BRKB was $267.52, and over the short-term, the next ~6 months, there was indeed an opportunity to buy it at a lower price two times. Each time for about $3 lower, once on Sep 26, and once on Oct 12.
But $3 lower on a $267 stock is not really a “much better” price, it’s only a tiny bit better.
I’ve written some Jan '23 puts on BRKA with the hope that they will be exercised and allow me an entry point below 300. They expire in 17 days from now. I would have preferred buying at $267, but was too fearful at the time.
Berkshire has a bunch of cash, but much less this year than last year. In 2021 they had $88.2B, and in 2022 they have $32.6B. Buffett hates holding excess cash because it loses him money every year due to inflation. The only reason he holds a lot of cash at times is to be ready to quickly consummate the next deal. And P/E for a company like BRK is mostly not meaningful because it varies dramatically, and Buffett doesn’t care that it varies because he doesn’t manage for quarter to quarter profits, instead he manages for increasing intrinsic value over time.
It is never predictable with any decent level of accuracy.