Discussion and Analysis Warren E$.$ Buffett and Investor Thinking :$1.$ What is the possible meaning of the changes in stock prices for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $$2\mathrm{.}17-$billion gain in Berkshires market value of equity imply about PacifiCorp's intrinsic value?$2.$ Based on the multiples for comparable regulated utilities, what is the range of possible values for PacifiCorp? What questions might you have about this range?$3.$ Assess the bid for PacifiCorp. How does it compare with the firms intrinsic value? Alternatively, the instructor could suggest that students perform a simple discounted cash flow $($DCF$)$ analysis$\mathrm{.}4.$ How well has Berkshire Hathaway performed? How well has it performed in the aggregate? What about its investment in MidAmerican Energy Holdings?$5.$ How do you assess Berkshires investments in Buffetts Big Four: American Express, Coca$-$Cola, Gillette, and Wells Fargo?$6.$ From Warren Buffetts perspective, what is the intrinsic value? Why is it accorded such importance? How is it estimated? What are the alternatives to intrinsic value? Why does Buffett reject them?