The world’s second-largest provider of credit ratings was trading at $49.40 at 10:07 a.m. in New York, the highest level on an intraday basis since October 2007. The stock gained 35.8 percent this year through yesterday".
Buffett was a big seller last last year and most of my shares will be called away at 40 but in my case I have sold put options against it. Hopefully BRK still has a meaningful position in this company.
If the beachlawyer thinks his float has been hurt by low interest rates, wait 'til he sees what happens to the value of that float when interest rates go up. Take a look at his bond portfolio and give some consideration to what he once asked Jack Byrne when Jack was running Geico: "Why do you lend when interest rates are rising?"
I think you're looking at this the wrong way: BRK's bond "portfolio" is not intended as a long term investment. Buffett hates the idea of cash. The only reason we hold bonds is because we have to in our insurance operations or for liquidity purposes. I would bet that nearly all our bonds are short term maturities, so rising rates have little effect on their prices. In the mean time, we hold $70 billion dollars of float, earning miniscule rates. With normal interest rates, our float could earn billiions more each year. The value of our float is a function of what it earns. In today's low interest envrironment, it earns very little. To me, this is as good an explanation for BRK's low Price/BV ratio than any other that has been offered.