This is a ChatGPT-free Zone
OK, so there are a lot of comments about the Berkshire Hathaway letter to shareholders all over the place and I really don’t have too much to add, but I thought I’d post some comments for the people I tell to read these every year (and I know they don’t). So consider this just a…
Buffett was on CNBC this morning. Who has time to sit in front of the TV from 7:00 – 9:00 am? And only the hardcore Buffett-heads would click through and watch all the videos or read the full transcript. (Also, I tell people to listen to Buffett but I know most don’t have the time to…
So I had a conversation recently and I mentioned LEAPS and leveraged recapitalizations (or synthetic recapitalizations) as one idea mentioned in Greenblatt’s You Can Be a Stock Market Genius (see the book here). Actually, Greenblatt calls this “creating your own stub stock”. A stub stock is the post recapitalized shares of a company that borrowed a…
OK, so I was not there but since the information is all over the place on live blogs and things like that, I thought I’d just sum up some of the things I’ve read including things I’ve heard on interview clips on places like CNBC, Fox Business News and others. Most of the actual meeting…
The financials have really exploded this year as unemployment and other economic figures continue to show some decent recovery. Europe doesn’t seem like it’s going to blow up tommorow. China seems to be going into a hard landing but China might be a laggard to what has happened in the U.S. and Europe in the…
Every once in a while, I hear this idea where you can buy Berkshire Hathaway stock at a discount. There are apparently some closed-end funds (CEF) that own a lot of Berkshire Hathway (BRK) stock and they trade at large discounts to net asset value (NAV), so therefore you can buy BRK at a discount….
In Search of Premium to Book Value So in the last post, we found that the deferred tax assets (unrealized capital gains on stock holdings) is deducted from BRK’s total shareholders’ equity and not from the insurance segment shareholders’ equity. So when figuring the total value of BRK, the deferred taxes can be added back….
In Search of a Premium to Book Value We looked at the two column method of BRK valuation and saw that yes, BRK is in fact cheap trading at 20-30% less than something like $150,000/share in intrinsic value. However, we also noticed that if you value the investments held on BRK’s books dollar for dollar,…
Let’s look at the basic model for valuing Berkshire Hathaway. It’s the model that is endorsed by Buffett himself in his annual reports. BRK basically breaks down into two basic components: An insurance company A bunch of wholly owned operating businesses. In what is usually called the two column valuation method, the insurance…
I’ve been thinking a lot about Berkshire Hathaway (BRK) lately. It’s still one of the best investments out there for most people. I don’t think it’s the highest return investment around, but an investment in Berkshire Hathaway at the current price is far better in my mind than owning the S&P 500 index or most…