Of course it is too complex to understand!
I've been following the "Intrinsic Value" arguments for more than a decade.
There are multiple valuation models, all of which yield conflicting values. As an example, the "Book Value + 70% of Float" model was recently resurrected and discussed on the moderated board. As far as I can tell, no real consensus has ever been reached as to which method has the greatest credibility.
Even if we use a bizarre price that may have existed for a single trade, BRKB's return still beat the S&P 500 for the period.
We can spin the methodology but the reality is this has been a superior investment.
I suspect most investors who put all their principal into BKRB that day, at that phantom price, would still be much better off today compared to what they actually did.
I specifically wrote that I had used the split adjusted HIGH for 1998, not the split adjusted CLOSE.
After holding this stock in my IRA since 1998, I can honestly say I am sorry I ever bought it, the returns are dismal at best..
I have heard Mr Buffet is so cheap he still has the first 5.00 he made, pinned to his underwear.... I believe this statement to be true...
If you want to be smart buy silver bullion I heard he bought a lot when it was in the single digits... probably none in BRK.B.....
BKRB's adjusted close on January 2, 1998 was 31.38. From then to today it appreciated 257%
The S$P 500 closed at 958 on January 2, 1998. From then to today it has gained 137%.
How can you call your superior return with BKRB "dismal"?
What are you comparing it to?