Question

Find out the closing price of BRK-B for Nov 3 and Nov 5. Describe your price change observation in a quantitative term. Explain what drove the change.

Include the sources you referenced in your research and analysis.

Please be succinct in your answer and avoid superfluous and round about answer. You are free to use your analytical insights as long as your opinion is fact based. Please limit your response to 150 words - depth of the response is more important that its length.

You will lose points if your response is not objectively answering the specific questions asked here.

Answer 1

Closing price for Berkshire Hathaway (BRK-B) on Nov 2 is $206.57

Closing price for Berkshire Hathaway (BRK-B) on Nov 5 is $216.24

The price increased by 4.68%. The company reported a net income of $18.54 billion for the quarter ended on September 30. Berkshire Hathaway had adopted new accounting standards. As a result of which the earnings in the last quarter included $11.4 billion in unrealized gains and losses resulting from changes in the fair values of its equity investment. Moreover, the company disclosed that a buyback of shares had happened valuing to around $928 million. Berkshire has repurchased its shares only twice before – in 2011 for $67 million and in 2012 for $1.3 billion. This move indicates that the promoter – Warren Buffet believes that the repurchase price of share is below its intrinsic value.

Sources: Yahoo Finance, Nasdaq, Berkshire Hathaway website