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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: rochish   😊 😞
Number: of 21939 
Subject: Re: IV and growth estimates
Date: 05/06/26 1:46 PM
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"A simple way might be to add up:
- non-insurance earnings
- look-through earnings (using Bloomstran's)
- interest income ("Other")"

"Average: 7.0%
A clear downtrend, as expected."

As discussed previously, the book value growth in the last 5 years is 11.5% CAGR.

rochish replies on IV and growth estimates

Clearly, there is a big disconnect between the metrics the firm is using to calculate book value and the above three metrics you mentioned. Are you missing anything that the firm considers relevant to calculate book value?

What multiple are you using on the look-through earnings? Assuming you use a single multiple for all their businesses (from railroad to energy to insurance to manufacturing and services, etc.), is that a valid approach?

I think the firm uses the current market value of equities for purposes of book value calculation. Fully owned subsidiaries are included at the cost of purchase (barring write-downs, etc. such as the 10B write-down on Precision Castparts some years ago). Unless one can argue that the equities held by BRK are overvalued, that seems to be a more reasonable approach to me.
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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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