Thoughts of market valuation

There is a lot of speculation on the pricing of the market and many individual stocks. I personally believe there is a lot of room to grow. If you look at a stock, and check out its P/E ratio, or its price earning's ratio, you will see many stocks below their historical levels. Many stocks could be much higher, their earnings justify it, and you would not think it's unusual  for the higher prices.

I never recommend stocks, but I like NIKE, Microsoft (MSFT), AAPL, GILD, QCOM, and even other high-tech stocks. I'm posting an article I wrote about Berkshire Hathaway, and I encourage you to read it. Then look at my final comments and look at the pricing. I'll give you a hint: The stock is currently around $220,000. That is not a mistake. One share of Warren Buffett's company is very expensive. But  think it could trade right now for $250,000 to $280,000 and that would be in the normal range.

This is for the A shares, Ticker  BRK/A. Consider the B shares (BRK.B or BRK/B).These are 1/1,500 of the A shares. Read the article on this blog, brought to you in installments, and you will understand this mathematical process.

More later.

Stock MarketWade Cook