Buffett's take on the ever critical in his view intrinsic value:
"Intrinsic value is an estimate rather than a precise figure,” Buffett, 78, wrote in the manual on Berkshire’s Web site. “We give you Berkshire’s book-value figures because they today serve as a rough, albeit significantly understated, tracking measure for Berkshire’s intrinsic value. In other words, the percentage change in book value in any given year is likely to be reasonably close to that year’s change in intrinsic value."As Berkshire's share price has slipped 44% in the past 12 months, matching the drop of the S&P, it is likely that the usual hordes of shiny happy people which invade Omaha every year for Warren's annual shareholder meeting, will be much less shiny and happy on May 2 this year.
In the meantime, Buffett has been migrating away from equities, investing in preferred and bond investments in companies such as Goldman, Tiffany's and Harley Davidson; at last check none of these were performing very well, especially the latter two, whose stock was trading near all time lows. Sphere: Related Content Print this post