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physdude

physdude
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  • Berkshire Hathaway: The Last Bargain [View article]
    Not sure whom you are referring to but what you are saying seems to be the same as what I am saying but framed better. The dtl is the adjustment for taxes I was referring to. Investment appreciation is also reflected in book value.
    Aug 1 10:10 AM | Likes Like |Link to Comment
  • Berkshire Hathaway: The Last Bargain [View article]
    BV handles investments as fair value with adjustment for taxes. Only fully acquired companies are carried at historical cost + reinvested earnings.
    Aug 1 09:48 AM | Likes Like |Link to Comment
  • Berkshire Hathaway: The Last Bargain [View article]
    The book value already accounts for the tax so that is not an issue. Also, BRK's leverage at this point is mostly on its operating businesses which are recession resistant so that also doesn't worry me much. It is also uncallable which precludes financial distress.
    Jul 31 02:26 PM | 1 Like Like |Link to Comment
  • Greenlight bounces back in Q2 [View news story]
    A QCOR short for one.
    Jul 25 03:42 PM | 2 Likes Like |Link to Comment
  • Clouds Over Omaha - Time To Sell Berkshire Hathaway [View article]
    Hush! We need such articles to keep Berkshire undervalued so that we can accumulate it cheap. It is quite amazing that it is trading below 1.5x book which is conservative fair value when the market is so expensive.
    May 13 03:55 PM | Likes Like |Link to Comment
  • Berkshire Hathaway Is A Bit Expensive [View article]
    Interesting that you mention MKL. I put in a very small % of my portfolio into it after the Altera acquisition as I thought the market's reaction was irrational but wish I had bought a lot more then. Admittedly, I didn't know all that much about them at the time except that Tom Gaynor was a good investor and I like them much more now as I have gotten to know them better (I have since increased the holding to about 5% of my portfolio). If you like MKL and Berkshire, you might want to look into JMHLY (Jardine Matheson) which is also very well run.
    May 8 01:42 PM | Likes Like |Link to Comment
  • Berkshire Hathaway Is A Bit Expensive [View article]
    From today's price action, it looks like the price will not get to my "back up the truck" threshold mentioned earlier. :)
    May 7 12:09 PM | Likes Like |Link to Comment
  • Clouds Over Omaha - Time To Sell Berkshire Hathaway [View article]
    I think that is why Buffett prefers investing in complete companies nowadays as that makes much more sense given the structure of BRK. Equities are getting to be of relatively low importance in the overall portfolio and their importance is probably to going to further decrease going forward.

    I am not worried too much about KO since their share value carried in the books is much lower than the actual value due to the capital gains tax accrual.
    May 7 08:09 AM | Likes Like |Link to Comment
  • Clouds Over Omaha - Time To Sell Berkshire Hathaway [View article]
    That thinking makes sense because of capital gains taxes and the relatively low dividend taxes that Berkshire faces. Any amount in excess of the original investment is partly deferred capital gains tax which is zero cost float and any dividends on them are returns on zero cost non-callable leverage which make them very attractive. Without such taxes, I am sure KO would have been sold long ago. However, due to such taxes, the alternative investment must provide a much greater return for such a sale to be worthwhile.
    May 7 02:47 AM | Likes Like |Link to Comment
  • Clouds Over Omaha - Time To Sell Berkshire Hathaway [View article]
    Actually there was an opening for a credentialed bear who was verifiably short Berkshire. Unfortunately, they couldn't find anyone who satisfied the criterion this time around. Perhaps you could apply for next year.
    May 6 03:50 PM | Likes Like |Link to Comment
  • Clouds Over Omaha - Time To Sell Berkshire Hathaway [View article]
    The performance measure you are using is share price rather than book value. If you use share price, you need to consider the starting valuation too. Needless to say, book has grown much faster than the share price over that time frame and the starting valuation now is much more favorable.
    May 6 01:31 PM | 3 Likes Like |Link to Comment
  • Berkshire Hathaway Is A Bit Expensive [View article]
    Interesting. I have an almost exactly similar plan except that I will not buy at 120 for now as I backed up the truck earlier at 108-110. At 115, it will, however, again begin to be too attractive to ignore despite it being my largest holding by far.
    May 6 12:40 PM | Likes Like |Link to Comment
  • Clouds Over Omaha - Time To Sell Berkshire Hathaway [View article]
    12 month is short term noise. Look at the record over the long term using book value.
    May 6 12:28 PM | 3 Likes Like |Link to Comment
  • Clouds Over Omaha - Time To Sell Berkshire Hathaway [View article]
    The spring is just being compressed harder by such articles before it eventually explodes and BRK returns to a sensible valuation. My advise is to encourage these critiques and keep on backing up the truck (particularly if they drive the stock price back to the buyback threshold).
    May 6 12:27 AM | 3 Likes Like |Link to Comment
  • Luck, Skill And Concentrated Portfolios [View article]
    Yes, but completely safe leverage (mostly float). No burning oneself with margin.
    May 5 03:24 PM | 1 Like Like |Link to Comment
COMMENTS STATS
114 Comments
174 Likes