A positive risk management note in this subject is the fact that, this summer, Berkshire pilled up their biggest mountain of cash. In theory they should have a lower Beta compared to the SP if equities continue to moves higher, but will be able to benefit significantly in any sell off. http://www.denverpost.com/2016/10/11/warren-buffett-extra-cash-can-invest-it/
This is true, however, as a counter-point to that is the fact that BRKB got more leverage. I believe Buffett is leveraged around 1.4-1.6 to 1 (combination of float, deferred tax liabilities and bond debt), and the companies he owns, also have debt. A SPY position only has that corporate debt underneath. The cash does bring the net leverage down somewhat Overall, I believe that the valuation+buybacks+buffettlogists buying is what can prevent a significant drop in BRKB as compared to the S&P500, which pretty much only has the Fed to prevent it from dropping
This BRKB vs SPY situation is interesting because so much of what BRK owns are private companies that are kept in the books at the acquisition cost and its not subject to mark to market. In 2008, stocks collapsed like 30-40%, yet BRKB only reported a ~10% book value loss. BRKB stock was down a lot more than that but there is this interesting dynamic now between the book value, the buybacks now that did not exist in all the other 50% drops in BRKB stock Because of that, big drops look to me more unlikely and any significant drops are likely to be covered faster
you got anything to add to the discussion other than to throw rocks when the short-term price favors your previous opinion?
I think I have already spoken enough on the subject. You will undoubtedly note that my opinion has not fluctuated, regardless of the short-term price swings (including the current one).
as I understand, your opinion is that you are 100% right about the company and therefore you can dismiss any scenario where you are wrong. its also the opinion of those who are short right now