Berkshire Hathaway: Intrinsic Value Estimate Exceeds $360 Per B Share

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Leftshark
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Summary

  • Assign value to after-tax non-insurance operating businesses and investments + excess cash (net of taxes).
  • Estimate trading at 10x multiple of after-tax operating earnings despite evident earnings quality, e.g. rails and regulated utilities.
  • See ~24% upside to intrinsic value with significant embedded margin of safety.
Conference On Issues Affecting U.S. Capital Markets Competitiveness

Chip Somodevilla

My last article on Berkshire Hathaway (NYSE:BRK.B)(NYSE:BRK.A) was nearly two years ago when I estimated Berkshire’s intrinsic value was around $315 per class B share, or $472,500 per class A share. Since publication, shares are 27% higher versus 4% for the S&P 500. Today, using

This article was written by

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1.1K Followers
Individual investor.

Disclosure: I/we have a beneficial long position in the shares of BRK.B either through stock ownership, options, or other derivatives. 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: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security.

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