Q4 BV/share up 8.27% versus Q3 to $342.6K/A-share
Q4 estimated IV/share up 8.3% versus Q3 to around $508K/A-share (+/- about 8%)
Q4 BV/share up 19.4% versus Q4 2021
Q4 estimated IV/share up 19.5% versus Q4 2021
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Oops, that should be versus Q4 2020.
As we know, a large fraction of the BV and IV gains in 2021 came from the equity portfolio, which rose to $350.7 billion, before deferred taxes. That’s an increase of 24.7% in FY 2021. The equity portfolio before deferred taxes now represents about 47% of IV.
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rrr,
Thanks! These are helpful comparisons. One question: How did you calculate IV?
" Q4 BV/share up 8.27% versus Q3 to $342.6K/A-share"
What are you guys using to calc BV that gets to $342.6K per share?
I am getting slightly lower numbers
What are you guys using to calc BV that gets to $342.6K per share?
I am getting slightly lower numbers
From page K-71: As of December 31, 2021, Berkshire Hathaway shareholders’ equity was $506,199 (in millions of dollars)
From page K-104: " On an equivalent Class A common stock basis, there were 1,477,429 shares outstanding as of December 31, 2021…"
$506,199M / 1,477,429 = $342,621.54 per A share
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“One question: How did you calculate IV?”
I used what I call the weighing machine method, which plots price versus BV over 40+ years. The fit is very good. Using IV = 1.48BV has also worked well over the last 20 years or so. Both methods tend to fall in the middle of the range of other valuation methods, such as two-column, DCF, sum-of-the parts, etc., which I’ve also used in the past. Another method I’ve used recently is based on Mungofitch’s observation that daily volume of repurchases falls off linearly with P/B, extrapolating to zero repurchases at 1.433x BV. Assuming that 1.433x BV represents a 5% discount to IV gives IV = 1.508x BV. The thing I like about the weighing machine method is that it requires no assumptions about future earnings or cash flows, or about appropriate discount rate or PE ratios. The only assumption is that over the long term price tracks BV, which is confirmed by the data.
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thank you
$506,199M / 1,477,429 = $342,621.54 per A share
Agree, $228.41 per B share, for those of us later to the party 
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