I've had two investment books out from the public library on my bookshelf for several weeks: The little book of common sense investing : the only way to guarantee your fair share of market returns and The little book of common sense investing : the only way to guarantee your fair share of market returns and am finally getting a bit of time to look at them. I've had a fair amount of my retirement money invested in a S&P 500 index fund -- so I'm familiar with the notion of investing in an index fund. As Laura and I consider investing in BRK.B - Berkshire Hathaway Inc., Laura and I learning about Value investing, particularly its relationship to Warren Buffett, which is described in the following terms:

However, the future distributions and the appropriate discount rate can only be assumptions. Warren Buffett has taken the value investing concept even further as his thinking has evolved to where for the last 25 years or so his focus has been on "finding an outstanding company at a sensible price" rather than generic companies at a bargain price.

I'm still trying to understand how to apply concepts such as P/E ratio to assess how good a buy Berkshire Hathaway is. Should I believe what Berkshire Hathaway Intrinsivaluator says?