As a shareholder of both AAPL & BRK/B, what’s interesting to me is how the market seems to have ignored the increasing value of Berkshire’s Apple stake. In the past year and a half, the market value Berkshire’s Apple stake is up, what, $50 billion or so? And yet Berkshire’s stock is down. Sure, part of that is due to underperformance in Berkshire’s bank stocks and recently-dumped airline holdings. But I don’t believe that the banks and airlines explain away all of Berkshire’s underperformance. It would appear that the market is discounting the prospects of Berkshire’s wholly owned companies like GEICO, See’s, Dairy Queen, Duracell, etc.
This is not your grandfather’s stock market.
Fed funds are making their way into the stock market in a large way (because money is fungible), so pension funds and other large investors are motivated to ignore risk and chase returns.
This article explains the process:
https://www.thestreet.com/investing/fed-bond-buying-driving-stock-market-rally