AIG just completed their settlement with the SEC and Spitzer. Now the road is paved to completed a settlement at a cost significantly below AIG. Look for BRKA to challenge the $100K barrier once the settlement is announced. I am expecting a settlement this quarter. Why do you think Gates bought all that BRKA stock? My guess is he knows the settlement is near and BRKA is ready to make a move.
Brka is definetly undervalue at current prices. I believe a settlement with Elliot Spitzer will the catalyst moving this stock higher. I view KO and American Express as potential buy-out candidates, too. Do you remember Gillette? KO is worth $48-$50 anyhow. BRKA has consolidated at these levels waiting for the setllement that will propel this stock higher.
This insurance stock moved lower after Katrina. They are increasing book value at about 20% per year. They own a bunch of BRKA in their portfolio :-) The stock will make a move back to the highs as BRKA regains preferential treatment...
My sense is that a settlement is long built into the price. If anything, the news may create new and significant buying opportunities for us. If the market tanks, BRK stock may just retreat to new three year lows, and the fun will begin! Following a lengthy consolidation period, BRK should reclaim its present high ground. Furthermore, I think the issue of Warren's mortality could be looked at in similar fashion. We are currently in the midst of a stretched out mourning process. The actual event will be an anticlimax.
Not sure why so often Mr. Buffett's 'mortality' is raised. Many people of less stature, less endowment of mental and physical acumen live well into the 90's, and he gives every indication he is taking excellent care of himself thereby giving every indication he is in the upper percentile vis-a-vis longevity. Relax, another 20 is a shoe-in.