To summarize in plain language, Berkshire is a decentralized company with great managers and an excellent track record of 

picking businesses. It has the ability to compound money over decades without having to worry

about short term market fluctuations or fads, while still being able to capitalize on them if

they occur (e.g., Apple). 

 

This is nonsense because, the SP500 is a market cap weighted index. Berkshire Hathaway has a large 

weight in the index because of its size and not because it is cheap or good.

 

Berkshire's stock price does not reflect its intrinsic value, but rather reflects the 

popularity of Buffett as an investor among other things. The company itself has been around 

for decades, and yet the stock price still fluctuates wildly with every news story about 

Buffett.