Buffett Likes Berkshire; Should You?

| About: Berkshire Hathaway (BRK.A)

Summary

Yes. It is a bargain at today’s price.

The price is close to Buffett’s buyback price.

Such a buyback is not charity.

Rangeley Capital's portfolio managers Andrew Walker and Chris DeMuth Jr host a fifteen-minute podcast, which you can subscribe to on Stitcher (we are also on iTunes and Soundcloud). If you missed the previous podcast episode, then please check out 3 Ideas Never Before Seen (Together).

In the current episode, we talk about Warren Buffett and Berkshire Hathaway (BRK.A/BRK.B). It is trading close to 52-week lows and close to where Buffett would buy back shares. He would only do so out of the belief that it is at a significant discount to its intrinsic value. If Buffett likes buying Berkshire around current prices, should you?

You can also follow us on Twitter (NYSE:TWTR) (Andrew and Chris).

Disclosure: I am/we are long BRK.B, BRK.A.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. Rangeley invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our investors, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.