When Is Berkshire Hathaway Stock Good Value? by Tushar Chande, PhD
A value player and a speculator will define value differently. Regardless, both can still benefit from identifying value in stocks. Here’s a look at some quantitative methods that value players and momentum traders can apply to identify good value in stocks.
What is value? Warren Buffett—who is known as “the Oracle of Omaha”—has given value investing its icon, and the trajectory of Berkshire Hathaway stock has been unrelentingly upward for decades. So it’s interesting to pose the question: When is Berkshire Hathaway stock good value? I must provide fair warning, though, because as the “Oracle” declared wistfully in 2008, “Beware of geeks bearing formulas.”