It has been a tough slog over the past few months. Kinda reminds...

It has been a tough slog over the past few months. Kinda reminds me of the price behaviour in March 2020 when the oil price collapsed and BRK hit a low of 0.002c. The difference between now and then though is the company is in a vastly different position.

You all know the story. Seen the numbers so little more I can say on that front. I have been in this game for a long time and all I can say is valuation and pricing often get confused, but the difference is immense.

Pricing is about supply and demand, market sentiment and momentum. It only tells you what people are willing to pay at this point in time. As we have seen the price can be detached entirely from underlying value. Value is about cash flows, growth, and risk. It isn’t affected by the factors that influence pricing.

What you need to ask yourselves as holders is whether this price move is due to a deterioration in BRK valuation or sentiment factors affecting the price. I think it is fairly obvious what is going on here.

The key question for you is whether the investment thesis that underpinned your investment decision has changed. If you were punting a short term price move it probably has...if it was the underlying valuation triggered an investment probably not.

GLTA

TP