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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: AdrianC ⎊🐝  😊 😞
Number: of 15066 
Subject: Re: Book + Float (+ 1/2 Deferred Taxes)
Date: 03/11/2023 10:42 AM
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Admittedly, I'm often late to the party. But I just recently became acquainted with the book plus float (or book plus float plus 1/2 deferred taxes) method of valuing Berkshire.

I set it up in my spreadsheet some years ago, and it spits out the number each quarter I do the update (currently $299/b).
But I've never really understood why this would be a good way to value Berkshire.

Float is valuable, of course. Last reported float is $165Bn. That's a lot of optionality. It's not like its spendable money, though.

(Bonds + Cash)/Float
2010-2022
105%
92%
100%
94%
101%
99%
102%
109%
105%
111%
113%
109%
92%

Bonds + Cash occasionally dips below the float value. Then cash builds up again.

Related, from my quotes file: 2/24/2020 WEB Squawk Box: "So, we're about 80% in-- roughly in equities and about 20% in cash"

Yep. Still is. Been that way for 10 years now.
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