No. of Recommendations: 3
In an alternative view, assume the cash is worth 1.0 book value, maybe a bit more because it might get invested in something good. That leaves the entire premium over book value on the rest of the operation. The stock portfolio, like the overall market is probably not undervalued at the moment. So just how much can the railroad, See's candy and all the other 100% owned companies be worth over their book value, because that is where the premium has to originate? I can't get my head around it, but I sleep well, knowing that the cash will go into buybacks if the P/BV gets low.
