Contrary to your claims of the stock price outperforming due to expanding the P/E ratio, the Price to Book ratio has actually been contracting over the past 10-20 years, meaning that investors have been giving less and less of a premium to Berkshire's book value. This may be due to the fact that Berkshire is getting closer and closer to being no longer managed by Buffett.
Contrary to your claims of the stock price outperforming due to expanding the P/E ratio, the Price to Book ratio has actually been contracting over the past 10-20 years, meaning that investors have been giving less and less of a premium to Berkshire's book value. This may be due to the fact that Berkshire is getting closer and closer to being no longer managed by Buffett.