I was a little disappointed with this year's letter. I expected to see a discussion on airline companies, and didn't, I expected to see a larger discussion on Ted and Todd but didn't. It is interesting that Ted and Tod have such independence that Buffett usually learns about their decisions from monthly trade sheets. It sounds like he believes the stock is trading at intrinsic value:
Over time, stock prices gravitate toward intrinsic value. That's what has happened at Berkshire...
I've been trading in Berkshire as if the repurchase price is a hard floor based on previous comments that Berkshire would "aggressively invest" at 120% of book value. This year's report states they will not "prop" the stock at this level. Not wanting to over-influence the market. I still think it's safe to sell puts at 120% of book value as long as they are backed up by cash or margin room.
Although Buffett clarified they would be willing to sell stock positions if necessary, the oldest stock positions have such high gains that they would be impractical to sell. Look at Amex and Coca-Cola where market value is 10x what they paid.
Love this quote:
"Every decade or so, dark clouds fill the economic skies, and they briefly rain gold."