Mr. Market has been incredibly excitable last week (Sept 15-19, 2008)... near the last couple of days of the week, the Mr. Market has been incredibly exuberant.
One thing I have noticed is that in the wild swings of the market, Mr. Market realized the value of Berkshire Hathaway. It closed the week at $147,000 per share. Notice that the intrinsic value that I calculated was $145,517. Frankly, I never thought that the equity would trade above my intrinsic value calculation so soon. This goes to show the positive side of the wild mood swings of Mr. Market.
Question is, should one sell their Berkshire Hathaway unit(s) to the enthusiastic market? I for one will not, since I will stick to my motto that Berkshire is for life. If I could find an appropriately priced business that can have level of consistent cash flows like Berkshire, or sane management as Berkshire, then I would gladly sell [most of] my Berkshire units (but never all) and buy that business. Alas, there is no such business I know of at this current time. That being said, I am in the long haul with Berkshire -- perhaps one of the finest businesses around.
I expect the price to fluctuate and perhaps go back down to the levels from a week ago. An intelligent investor must not be concerned with the daily fluctuations of equity prices.
