March 20 (Bloomberg) -- The last few years have been a
struggle for investors in Berkshire Hathaway Inc. Since the
March 2009 market low, the Standard & Poor’s 500 Index has risen
80 percent compared with 44 percent for Berkshire, even though
crashing stock prices and unprecedented volatility perfectly
suited Warren Buffett’s investing style.
Now Berkshire stock hovers at about a 10 percent premium to
the company’s estimated $110,000 per-share book value at March
31, 2012, (assuming the overall book value increases in a rising
stock market by about $10 billion this quarter) and perhaps
below a liquidation price. In essence, the market is placing no
value on Berkshire’s prospects.