Intrinsic Value versus Market Price
The key secret there is that the way to calculate intrinsic value is not precise. It's based on a lot of assumptions, and those assumptions can be easily adjusted based on anticipated interest rate.
Buffett never gives investors the intrinsic value he has calculated for a company, but he will give details in his annual reports relating to the facts that he and Munger used to determine the intrinsic value of a company.
Buffett believes Berkshire Hathaway's book value far understates its intrinsic value because many of the businesses Berkshire Hathaway controls are worth much more than their carrying value.
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