......."I'm glad as hell that WEB lets us hitch a ride with him, but why does he do it? He doesn't get paid much to run BRK (other than his stake in the company), so why let us little guys in at all?".....simple.....he NEEDS us. He can't be WARREN BUFFET without us; and he really likes being WARREN BUFFETT......Some guys when they get older and real rich like to be reverse snobs......Sam Walton was one.....drove an old Impala, .......brought his lunch in a paper bag......raised bird dogs.......but in his heart of hearts, he was a fierce competitor......Buffett's the same way........low key guy; steel trap mind......says he still loves the game.......he'll never stop...........die with his boots on and make a lot of folks rich in the process.........the beat goes on......
On June 19, 1998 when Buffet was striking the deal with General Re and when Bershire Hathaway A stock was valued at $84,000 (Berkshire Hathaway Valued at $2795) he announced the following:
Warren Buffett, Chairman of Berkshire, commented: "The merger will bring more than $80,000 of investments to Berkshire for each Class A or Class A-equivalent share issued. That's beneficial, being nearly double the existing level, or, put another way, the merger brings more than $24 billion of additional investments to Berkshire.
Recently the Paine Webber Analyst valued Berkshires A value at between $91,000 to $97,000, and she pulled back her estimates a couple of times, so as not to sound foolish. But look at what Buffet said that everybody seems to have missed. Buffet is usually very conservative. He tends to understate the facts. He is saying the value of the merger with General Re will bring an additional $80,000 to each Berkshire A ($2666 to each Berkshire B.) So if the stock (BRK.A) price today is $71,900 and you add another $80,000 that mean the stock (BRK.A) is valued at $151,900 (B Stock value is $5063.00.)
People have missed this key fact in this news release. If you are going to climb aboard, better climb aboard now before people realize this, and the stock starts to rise to meet Buffet's valuation.