Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
Unthreaded | Threaded | Whole Thread (21) |
Author: mungofitch 🐝🐝🐝 GOLD
SHREWD
  😊 😞

Number: of 21941 
Subject: Re: BACk to selling BAC
Date: 08/21/24 11:55 AM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 19
“So You Bought $1,000 Of Berkshire, Hathaway Stock: What Did You Get?“

It's an interesting question.
This is his answer:
$317 in equities
$292 in cash and cash equivalents
$391 implied market value of all other assets (39.1% of his total)

But unfortunately his answer is totally wrong. Not just because he chose a rather meaningless scaling factor, but mainly because he forgot there are liabilities.

If you buy $1000 worth of Berkshire at the current price of $669225 (all other figures using June 30 breakdown), you get ownership of $626 worth of net assets. P/B is 1.598 right now.
That $698 in net assets is made up of $1153 in total assets, minus $527 in liabilities.

The $1153 of total assets that you get for your $1000 breaks down as follows:
$327 in equities
$288 in cash and cash equivalents
$538 implied market value for all other assets (46.7% of the total assets you've purchased, and 53.8% of the $1000 you invested)

Jim

Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to mungofitch here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
Unthreaded | Threaded | Whole Thread (21) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community