Warren Buffett sharing his views on Book Value

During the 1998 Berkshire annual meeting Warren Buffett and Charlie Munger shared some interesting views on Book Value. Many people think that Value investing means that people should buy stocks that are somehow cheap based on their book value. In this video Warren Buffett is trying to explain a bit more.

How did you like the video? Please let us know in the comments below. As you can see a low price to book itself isn’t very important to the CEO of Berkshire Hathaway. What really matters is being able to return capital at high rates.