Author Topic: Valuation  (Read 6135 times)

ValueMaven

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Valuation
« on: February 02, 2021, 11:21:42 AM »
Greg Warren is a very good analyst who has been brought back by Warren and Charlie over the last several shareholder meetings.  This piece didn't generate enough hits when it was published (during the holidays) - but he is very thoughtful on his valuation case.  It's a decent write-up and directionally correct. 

https://www.morningstar.com/articles/1016064/how-to-value-berkshire-hathaway


Dooba

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Re: Valuation
« Reply #1 on: February 02, 2021, 12:14:42 PM »
Thanks for the link.
ďI have never seen a management consultantís report in my long life that didnít end with the following paragraph: 'What this situation really needs is more management consulting.' Never once. I always turn to the last page."-Charlie Munger

no_free_lunch

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Re: Valuation
« Reply #2 on: February 02, 2021, 12:20:40 PM »
I don't have a subscription.

Can someone post a summary?

Dooba

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Re: Valuation
« Reply #3 on: February 02, 2021, 12:29:36 PM »
I would have preferred a deeper dive into the DCF model, including the discount rate they are using.
ďI have never seen a management consultantís report in my long life that didnít end with the following paragraph: 'What this situation really needs is more management consulting.' Never once. I always turn to the last page."-Charlie Munger

ValueMaven

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Re: Valuation
« Reply #4 on: February 02, 2021, 12:50:01 PM »
Yes.  Agreed. 

ValueMaven

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Re: Valuation
« Reply #5 on: February 02, 2021, 12:51:07 PM »
I don't have a subscription.

Can someone post a summary?

It's a brief DCF based on Insurance, BNSF, BHE, and MSR units.  He aggregates it into a rolled-up SOTP's valuation. 

alexmiddle

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Re: Valuation
« Reply #6 on: February 03, 2021, 08:39:45 AM »
I don't have a subscription.

Can someone post a summary?

You can sign up for free to see the whole article.  It was a very high level sum of parts that I felt didn't address the value of the huge cash balance enough.  They estimate the value of the b shares at $253. 

ValueMaven

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Re: Valuation
« Reply #7 on: February 04, 2021, 01:31:11 PM »
Man, Berkshire is sitting on a $100,000,000,000 paper profit in AAPL in just under 4 years.  Amazing.

Aurel

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Re: Valuation
« Reply #8 on: February 05, 2021, 03:18:58 AM »
I don't have a subscription.

Can someone post a summary?

Try: outline.com

Fahrweid

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Re: Valuation
« Reply #9 on: February 08, 2021, 10:54:08 AM »
I don't have a subscription.

Can someone post a summary?

Try: outline.com

Great site. Thanks Aurel! Works perfectly.