Berkshire Hathaway Will Not Increase Wesco Bid [View article]
I read that Berkshire would use its Class B stock to pay Wesco shareholders who elect to take Berkshire stock. In my view, since Berkshire is offering "undervalued" BRK-B shares to pay for Wesco's stock at "a price around book value per share" this might be a more valuable deal than it looks on the surface.
Yes, "a deal more valuable than it first appears."
Thinking of "intrinsic value," It is my opinion that BRK shares ( my estimate of Intrinsic value for A shares is around 180K/brk-a ) are more undervalued than WSC shares; therefore, in reality WSC shareholders would be receiving around $353 + $116 in value ( think 33% discount or premium ) for a total of around $468 in value per share. In my view, those who take the deal will be rewarded and those who cash out will receive book value.
I do not know if you guys have seen my books. My newest one, "Valuations" offers 30 sample "intrinsic value per share" business valuations in the style that Warren Buffett and Charlie Munger may use. In each case I tried to simulate an approach that they would take to valuing a business. My books are posted on amazon.com and at the self-publishing service Lulu here: stores.lulu.com/4filters
Valuations, the new book with 30 case samples [View instapost]
See the book review by Bert Murillo
This review is from: Valuations - 30 Intrinsic Value Estimations in the style of Warren Buffett and Charlie Munger (Paperback)
"Valuations" by Bud Labitan is a concise, direct approach to determine whether a certain company's stock price would be considered a bargain at its current market price. The case studies in this book examine the intrinsic values per share of the most important businesses that govern our economic lives today. These companies are all commonly known by the average investor. It is intriguing to decide if a specific company for which the investor consumes their products and services are worth your investment dollars. The author emphasizes Free Cash Flow in his estimates to calculate "intrinsic value". By using the examples and formula the author provides, the reader can easily calculate "intrinsic" value for any other company he or she chooses to research and then determine if that company's stock is a bargain or not. Overall I would consider "Valuations" a must read for all students studying behavorial finance simply for its case studies alone. For the average investor, this book can help you justify your purchase for a certain stock. I learned a lot from this book!
NOK has some good qualities as many of you have stated. I am still waiting to learn more about its competitive advantages and its management.
My new book Valuations is now on amazon.com ! It explores 30 companies in a bit more detail. So, feel free to share this information with your friends and associates.
Interview: Bud Labitan, Author of 'Price to Value', Distinguishes Between Kinds of Speculation [View article]
Valuations - 30 Intrinsic Value Estimations in the style of Warren Buffett and Charlie Munger
By Bud Labitan
This book offers 30 sample “intrinsic value per share” business valuations in the style that Warren Buffett and Charlie Munger may use. In each case the author tried to simulate an approach that they would take to valuing a business, based on what they have written and talked about. However, all of the growth assumptions used are the author's own. No consultation nor endorsement was sought with Mr. Buffett or his business partner Mr. Munger. The examples given are chosen for educational and illustrative purposes only. The valuation cases are estimations written in a style that emphasizes a focus on free cash flow and the number of shares outstanding. Readers are also repeatedly encouraged to think about the business’ competitive position. In reality, these businesses may outperform or they may underperform any of the author's projections.
Defending General Dynamics Corp as a Value Investment [View article]
Starting with a base estimate of annual Free Cash Flow at a value of approximately $2,500,000,000 and the number of shares outstanding at 385,730,000 shares; we used an assumed FCF annual growth of 6% for the first 10 years and assume zero growth from years 11 to 15. The resulting estimated intrinsic value per share (discounted back to the present) is approximately $94.86.
GD's competitive standing? Most of the sales are from the US govt.
Caterpillar will purchase EMD from Berkshire Partners, a Boston-based firm unrelated to Buffett’s Berkshire Hathaway. Berkshire Partners and Greenbriar Capital, purchased EMD in 2005 when its long-time owner General Motors put the company up for sale. The firm had sales of $1.8 billion last year and has an installed base of 33,000 diesel-electric locomotives in the U.S. Go US Rail !
Market Price = $60.76 while the Intrinsic Value = $81.85 (estimated)
yes, parts of the articles are generated by software... however, they are designed to make us think and dig deeper... sort of like the way Buffett answers/asks questions.
Is Forestar Group an Investment or Speculation? [View article]
You are partially correct. However, there are useful estimations and admonitions in each article. They make the reader think about what they are about to buy or sell.
The intrinsic value estimations are based on specific FCF numbers for each company. The growth assumptions are my own; and, I try to keep them a bit on the conservative side. Readers are also repeatedly encouraged to think about the business’ competitive position. In reality, these businesses may outperform or they may underperform any of the author's projections.
Berkshire Hathaway Will Not Increase Wesco Bid [View article]
I read that Berkshire would use its Class B stock to pay Wesco shareholders who elect to take Berkshire stock. In my view, since Berkshire is offering "undervalued" BRK-B shares to pay for Wesco's stock at "a price around book value per share" this might be a more valuable deal than it looks on the surface.
Yes, "a deal more valuable than it first appears."
Thinking of "intrinsic value," It is my opinion that BRK shares ( my estimate of Intrinsic value for A shares is around 180K/brk-a ) are more undervalued than WSC shares; therefore, in reality WSC shareholders would be receiving around $353 + $116 in value ( think 33% discount or premium ) for a total of around $468 in value per share. In my view, those who take the deal will be rewarded and those who cash out will receive book value.
I do not know if you guys have seen my books. My newest one, "Valuations" offers 30 sample "intrinsic value per share" business valuations in the style that Warren Buffett and Charlie Munger may use. In each case I tried to simulate an approach that they would take to valuing a business. My books are posted on amazon.com and at the self-publishing service Lulu here:
stores.lulu.com/4filters
.
Valuations, the new book with 30 case samples [View instapost]
This review is from: Valuations - 30 Intrinsic Value Estimations in the style of Warren Buffett and Charlie Munger (Paperback)
"Valuations" by Bud Labitan is a concise, direct approach to determine whether a certain company's stock price would be considered a bargain at its current market price. The case studies in this book examine the intrinsic values per share of the most important businesses that govern our economic lives today. These companies are all commonly known by the average investor. It is intriguing to decide if a specific company for which the investor consumes their products and services are worth your investment dollars. The author emphasizes Free Cash Flow in his estimates to calculate "intrinsic value". By using the examples and formula the author provides, the reader can easily calculate "intrinsic" value for any other company he or she chooses to research and then determine if that company's stock is a bargain or not. Overall I would consider "Valuations" a must read for all students studying behavorial finance simply for its case studies alone. For the average investor, this book can help you justify your purchase for a certain stock. I learned a lot from this book!
Valuations, the new book with 30 case samples [View instapost]
Valuations is now on amazon.com !
Feel free to share this with your associates.
www.amazon.com/Valuati...
.
Is Nokia a Buy? [View article]
My new book Valuations is now on amazon.com !
It explores 30 companies in a bit more detail. So, feel free to share this information with your friends and associates.
www.amazon.com/Valuati...
Interview: Bud Labitan, Author of 'Price to Value', Distinguishes Between Kinds of Speculation [View article]
By Bud Labitan
This book offers 30 sample “intrinsic value per share” business valuations in the style that Warren Buffett and Charlie Munger may use. In each case the author tried to simulate an approach that they would take to valuing a business, based on what they have written and talked about. However, all of the growth assumptions used are the author's own. No consultation nor endorsement was sought with Mr. Buffett or his business partner Mr. Munger. The examples given are chosen for educational and illustrative purposes only. The valuation cases are estimations written in a style that emphasizes a focus on free cash flow and the number of shares outstanding. Readers are also repeatedly encouraged to think about the business’ competitive position. In reality, these businesses may outperform or they may underperform any of the author's projections.
www.lulu.com/product/p...
Defending General Dynamics Corp as a Value Investment [View article]
GD's competitive standing? Most of the sales are from the US govt.
Is BP an Investment or Speculation? [View article]
Is Caterpillar a Bargain? [View article]
Is Caterpillar a Bargain? [View article]
Market Price = $60.76 while the
Intrinsic Value = $81.85 (estimated)
yes, parts of the articles are generated by software...
however, they are designed to make us think and dig deeper...
sort of like the way Buffett answers/asks questions.
Is Forestar Group an Investment or Speculation? [View article]
Does Kraft Foods Make for an Intelligent Investment? [View article]
Berkshire owned 106.73 million Kraft shares worth $3.23 billion as of March 31, down 31.54 million shares from 138.27 million three months earlier.
Valuing Wells Fargo: Not a Bargain [View article]
Valuing Wells Fargo: Not a Bargain [View article]
www.lulu.com/product/p...
Can Bristol-Myers Squibb Heal Your Portfolio? [View article]
Debt/Equity Ratio = 0.41
Price/Value (P/V) Ratio = 0.79 and the estimated bargain = 21%
Is Alcoa a Value Investment? [View article]
All is not lost... the world economy could expand at a rate greater than 7% if notions get their debts to more reasonable levels.