Quote from BlueHorseshoe:
This is the fundamental difference between what Buffett sees and what traders see.
The prices you see stocks trade for on the market are simply that - prices.
Price and Value: They are two very distinct numbers. A value investor doesn't confuse them. Traders do.
Buffet takes care to know the value of what he gets into, and gives himself the timeframe to ONLY TAKE ADVANTAGE of price. Price is related to an instrument's value only tenuously - price certainly doesn't equal its value. Unless of course you must sell immediately, but then you must sell regardless of value or whatever price the market, or Mr. Market, gives you. (BTW 'Mr. Market' is a construct of Benjamin Graham, Buffet's teacher. Not some half-wit ET lurker.)
Because Berk doesn't pay dividends, there is a very definite relationship between its BV and Value. That Berk share price might dive and soar all over the place is IRRELEVANT.
