No. of Recommendations: 2
Tilson current 2 column BRK IV estimate from Empire Financial newsletter:
'This results in $19,456 in adjusted pretax earnings per share in 2022, to which I apply a multiple of 11 times to arrive at a value for the operating businesses of $214,000 per share.
Now add the $348,000 in cash and investments per share to arrive at a total intrinsic value of $562,000 per A-share (or $375 per B-share).
With the A-shares closing yesterday at $463,525, that means the stock is trading 18% below my estimate of its intrinsic value.
In summary, Berkshire is incredibly safe, growing at a healthy rate, and its stock is cheap. Since the market's recovery after the COVID crash, Berkshire has traded at a 0% to 20% discount, so today it's near the high end of that range ' making this an excellent time to own the stock.'
