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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.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Munger_Disciple 🐝  😊 😞
Number: of 21942 
Subject: Re: BRK.B performance vs Price/Book
Date: 09/26/24 12:37 PM
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Is there a published or relatively easily calculable alternative to book for estimating IV and/or its changes over time?

Buffett did not give a formula for intrinsic value but he broadly outlined how to think about it. There are two main items that contribute to intrinsic value of BRK: (1) Net cash + investments per share, and (2) Normalized non-insurance operating earnings (excludes insurance u/w profit or loss, and investment income). This is commonly known as the "two column method". The first column is self explanatory and one can make an allowance for deferred taxes which may be at least partly payable at some point. The second column involves an estimate of business value of non-insurance subs run by Greg.
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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
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