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Berkshire Hathaway Inc. Message Board

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  • bobo21029 bobo21029 Sep 2, 1998 2:31 PM Flag

    Value of BRk with zero Buffett premium

    ..........On p.11 of the Aug 12 prospectus BRK
    reckons June 30 value to be $29,743. So what you are
    saying is your calculations will take us to $54,065 in
    New Berkshire Hathaway? I believe BRK traded at
    $78,300 back on 6/30, so if the market ever gets that
    wild again a $54,000 share would trade at around
    $200,000. Here's hoping it happens.......

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    • <<<..........On p.11 of the Aug 12
      prospectus BRK reckons June 30 value to be $29,743. So what
      you are saying is your calculations will take us to
      $54,065 in New Berkshire Hathaway? I believe BRK traded
      at $78,300 back on 6/30, so if the market ever gets
      that wild again a $54,000 share would trade at around
      $200,000. Here's hoping it happens.......
      >>>

      Is that equity that you mean by "value"?

      My
      calculation did not use equity, it used securities net of CGT
      (valued as of yesterday, I think, assuming that no
      positions were changed since New year), plus the value of
      operating companies at the P/E of 30, plus the value of
      underwriting gain on GEICO's float.

      I also added 30
      billion, which will likely be the amount of investable
      funds from Gen Re if they stop ceding
      reinsurance.

      I divided this by about 1,450,000 shares, which is
      how many shares we'll have after the merger
      closes.

      The calculation above does not assume anything about
      Buffett's outperformance. So, if Berkshire was managed by
      Joe Blow, 54,000 per share is what it would be
      worth.

      Since Berkshire is managed by WEB, it is worth slightly
      more, but how much is up for anyone to guess.

 
BRK-A
216,975.00+4,330.00(+2.04%)Jun 30 4:02 PMEDT