It has been noted by many that BRK.A and BRK.B have underperformed the latest market moves to the upside and are trading at low multiples compared to historical norms. Based on these observations ... is it a good time to buy Berkshire Hathaway?
We are suggesting that perhaps the best way to purchase Berkshire Hathaway is through BTF and BIF, two Boulder funds that currently trade at 21% discounts to NAV. If you check the historical spreads between NAV and market price for BTF and BIF you will note that they traded close to par in good markets.
Therefore our recommendation is to purchase BTF and BIF and leverage the market upside on BRK.A and BRK.B ... if you think there is an upside! In December 2006 the discount to NAV on BTF was only 3%.
Appreciate your comments on this method for owning Berkshire Hathaway. NOTE : this is not a pure play on BRK.A and BRK.B.
We are long BTF and BIF.