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Berkshire Hathaway Inc. Message Board

  • itmisc2006 itmisc2006 Aug 14, 2013 10:49 PM Flag

    Best Combinations!!!!!

    Never saw any stock with these best combinations.

    1) Blow out earnings
    2) Undervalued
    3) Nearly no debt

    I am buying on every dip!!!!!!!!!

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    • BRK-B now trades at 142% of book value, which is 18+% MORE THAN the maximum the board of directors would pay to begin buying back the stock. For your information, the board of directors will only consider buying back stock if the price is LESS THAN 120% of book value.

      Yet you, itmisc2006, claim that the stock is "Undervalued", which implies that you know what it is really worth.

      So, what do you believe it is worth, and more importantly, why?

      A number and a supporting rational, please.

      No more giddy stock pumps!

      • 2 Replies to jad1148
      • Jad: Mr. Buffett has explained a number of times that the 120% of book figure is a number that is "very far below intrinsic value"... he said that he is not sure of the exact intrinsic value, but wants the price to be very far below that number to ensure a sizable margin of safety.

        The fact that the Board has agreed to set the number at 1.2 of book does NOT mean that it is not undervalued above that number...

        A fair value of Berkshire depends greatly upon your holding period. If you are going to hold on to it for a long time, then ongoing compounding of the equity over time will make the current price VERY undervalued over time... If you are planning on buying it for a quick turn around in a year or two, then it becomes less so...


        Sentiment: Buy

      • The History of Berkshire is to trade at around 1.7 per book with a high of 2.6 per book around mid 2000's . Thus Berkshire is trading at a discount right now

        Sentiment: Buy

143.60-0.89(-0.62%)Oct 21 4:02 PMEDT