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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: bigshan ⎊  😊 😞
Number: of 15072 
Subject: how market would valuate BRK
Date: 08/07/2023 12:00 PM
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It's not unreasonable that the market would valuate BRK as follows:

Operating business worth 15 x operating earnings = 15 x $18*2 billions = $540 billions
Investments in equity securities = $353 billions
Cash = $150 billions

total between: 540+353+100=$993 to 540+353+150= $1043 billions

that's 25% to 31% higher than today's price.
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Author: longtimebrk ⎊  😊 😞
Number: of 15072 
Subject: Re: how market would valuate BRK
Date: 08/07/2023 12:01 PM
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got some liabilities to offset those lovely assets. $1 Trillion worth but who is counting
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Author: bigshan ⎊  😊 😞
Number: of 15072 
Subject: Re: how market would valuate BRK
Date: 08/07/2023 12:02 PM
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There is a double counting here: part of the operating earnings come from dividends of equity securities and cash.
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Author: mungofitch ✹🐝🐝🐝🐝 SILVER
SHREWD   😊 😞
Number: of 15072 
Subject: Re: how market would valuate BRK
Date: 08/07/2023 1:34 PM
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It's not unreasonable that the market would valuate BRK as follows: ...

I think the market mainly values Berkshire like this: Woo! Stock going up! Buy!
There are some deeper thinkers of the market go like this: Woo! Quarterly earnings beat! Buy!
In other words, I don't generally expect much intelligence or deep insight from short term market moves, up or down : )

There are some who quite rationally see that the book value is up a lot, and think the firm is worth that much more. But I doubt that group accounts for more than 1% of daily volume.

Jim
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