Author Topic: Buffett/Berkshire - general news  (Read 510579 times)

undervalued

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Re: Buffett/Berkshire - general news
« Reply #150 on: August 14, 2015, 03:48:18 PM »
Looks like BRK is building some equity stakes somewhere. Maybe that's why they financed part of PCP with debt?

http://www.bloomberg.com/news/articles/2015-08-14/berkshire-increases-stake-in-charter-keeps-some-trades-secret

In the article it says:

Quote
“They’ve got to put money to work,” Jeff Matthews, a Berkshire investor and the author of books about the company, said before the filing was released. “They can’t tell Warren, ‘I hate this market, I’m going to wait for a crisis.’”

Really? That's weird. I guess they operate like a mutual fund?
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers


rb

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Re: Buffett/Berkshire - general news
« Reply #151 on: August 14, 2015, 06:00:18 PM »
Jeff Mathews is actually a pretty decent writer, but sometimes he blurts out stupid things like that

james22

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Re: Buffett/Berkshire - general news
« Reply #152 on: August 17, 2015, 10:36:24 PM »
Whitney Tilson: Berkshire Hathaway Now Worth $275K A Share

A Safe, High-Quality, Growing Company With 42% Upside Over the Next Year


http://www.valuewalk.com/2015/08/tilson-berkshire-hathaway/

Any thoughts?
BRK, BAM l SV, EM l Fannie Mae, Freddie Mac l Stable Value, Cash Value

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #153 on: August 18, 2015, 06:23:42 AM »
Whitney Tilson: Berkshire Hathaway Now Worth $275K A Share

A Safe, High-Quality, Growing Company With 42% Upside Over the Next Year


http://www.valuewalk.com/2015/08/tilson-berkshire-hathaway/

Any thoughts?

Nothing new here, Tilson has been valuing BRK with upside for many years now. Looks reasonable to me, BRK remains undervalued. The CEO is fine with this arrangement. Now, that's rather uncommon. 

james22

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Re: Buffett/Berkshire - general news
« Reply #154 on: August 18, 2015, 09:19:17 PM »
What strikes me as new is the overvalued market which makes BRK look relatively unique:

Conclusion: Berkshire Has Everything I Look for in a Stock: It's Safe, Cheap and Growing at a Healthy Rate

Extremely safe: Berkshire's huge hoard of liquid assets, the quality and diversity of its businesses, the fact that much of its earnings (primarily insurance and utilities) aren't tied to the economic cycle, and the conservative way in which it's managed all protect Berkshire's intrinsic value, while the share repurchase program provides downside protection to the stock

Cheap stock: trading 22% below intrinsic value, without giving any credit to immense optionality, with 42% upside over the next year

Intrinsic value is growing at roughly 8-10% annually


Seems few safer, cheaper, faster growing alternatives.
BRK, BAM l SV, EM l Fannie Mae, Freddie Mac l Stable Value, Cash Value

rb

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Re: Buffett/Berkshire - general news
« Reply #155 on: August 18, 2015, 09:40:21 PM »
Seems few safer, cheaper, faster growing alternatives.
That's all true. It is a testament to BRK's value creating abilities that they can still be cheap after the great run the stock had for the past couple of years.

The real question is what to do from a portfolio management standpoint. I think this may apply to a lot of people here. What do you do if you already have a large BRK position and you have cash and you are looking at this market. Do you say that position sizes don't matter and go and buy more? Or are you satisfied that you have a large position in something that is undervalued and will appreciate further and wait for something else to come along?

I'm guessing opinions are all over the spectrum but I'd be interested if someone has a well thought out and rational position rather than just gut feeling.

james22

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Re: Buffett/Berkshire - general news
« Reply #156 on: August 19, 2015, 09:28:34 PM »
What do you do if you already have a large BRK position and you have cash and you are looking at this market. Do you say that position sizes don't matter and go and buy more? Or are you satisfied that you have a large position in something that is undervalued and will appreciate further and wait for something else to come along?

BRK's safety makes the position size less an issue for me.

And while cheap, I've been waiting not for something else, but for a market correction (bear/crash) that would make even cheaper.

Seems overdue, but maybe it silly not to add at P/B 1.4 whenever can?
BRK, BAM l SV, EM l Fannie Mae, Freddie Mac l Stable Value, Cash Value

rb

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Re: Buffett/Berkshire - general news
« Reply #157 on: August 19, 2015, 09:55:35 PM »
You see that's the same question I ask myself all the time as I like to buy more. Also 1.4 P/B pre PCP deal is not the same post PCP deal. But also one must ask oneself where is the line, what is a right BRK. I'm pretty sure I can't just be 100% though that has worked out very well for some people in the past.

I have an extensive finance education and I know that those Portfolio classes didn't teach me anything. We as value investors have to figure out these thing for ourselves.

Who knows, maybe CoB&F will get a Nobel Prize

ourkid8

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Re: Buffett/Berkshire - general news
« Reply #158 on: August 20, 2015, 04:51:43 AM »
1.4x book is PRE KHC as well. If KHC is included, you are Closer to 1.3x book.

What do you do if you already have a large BRK position and you have cash and you are looking at this market. Do you say that position sizes don't matter and go and buy more? Or are you satisfied that you have a large position in something that is undervalued and will appreciate further and wait for something else to come along?

BRK's safety makes the position size less an issue for me.

And while cheap, I've been waiting not for something else, but for a market correction (bear/crash) that would make even cheaper.

Seems overdue, but maybe it silly not to add at P/B 1.4 whenever can?

james22

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Re: Buffett/Berkshire - general news
« Reply #159 on: August 20, 2015, 07:26:14 AM »
I don't think it [P/B] really changes. Cash down, debt up, assets up...balancing.

http://boards.fool.com/bv-after-pcp-31867693.aspx?sort=whole


I did just add to my position today.
BRK, BAM l SV, EM l Fannie Mae, Freddie Mac l Stable Value, Cash Value