Avoid Paying Taxes The Warren Buffett Way

About: Berkshire Hathaway Inc. (BRK.B), BRK.A
by: Saibus Research
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Saibus Research
Long/short equity, Deep Value, value, special situations

We own a position in Berkshire Hathaway (NYSE:BRK.B) (NYSE:BRK.A) because it is run by investing legend Warren Buffett. Although it will not generate the same ~20% compounded annual returns it generated over the next 50 years that it generated over the last 48 years, we agree with hedge fund millionaire and Obama donor Whitney Tilson that Berkshire is undervalued by at least 25% and we analyzed and evaluated how Berkshire's $1.2B buyback has resulted in a de facto floor on Berkshire's share price of 1.2X Berkshire's book value. In addition to our thesis that Berkshire is at least 25% undervalued, there are two other reasons why we hold a position in Berkshire Hathaway. The first reason