Berkshire Hathaway Q4 2019 Earnings And Book Value Estimates - Buy Back Shares Please

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About: Berkshire Hathaway Inc. (BRK.A), BRK.B, Includes: AAPL, BAC, KHC, OXY, UNP
by: Fishtown Capital
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Fishtown Capital
Long/short equity, Deep Value, growth at reasonable price, investment advisor
Summary

Berkshire's equity book rose an eye popping 14.6% in Q4 and is up 38% for 2019, significantly beating the S&P 500's 29% return.

Operating performance remains strong with Q3 results coming in at $7.8 billion.

Berkshire's cash has grown to $128 billion, representing 23% of its current market value. The Apple stake has grown to $70 billion, representing 13% of the market value.

Even after rising from $206 to $226 in Q4, Berkshire's price/book value remains near the lows of its historical range because of the strength of its equity book and continued operating earnings.

Berkshire remains a great buy at these prices, and I reiterate my call for them to launch a repurchase tender at a small premium to current levels.

Berkshire Hathaway (BRK.A) (BRK.B) is wrapping up another strong year. Berkshire's equity book significantly outperformed the S&P 500, largely on strength from its largest holding, Apple (AAPL). The operating