Please be open to feedback and constructive criticism from others, and consider their suggestions and advice when making decisions or forming opinions.
- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 3
BN at ATH. Market cap north of 100 billion for the first time!
102.321 billion to be precise based on today's (July 3) closing price of 64.30 and 1591.3 million diluted shares outstanding as of 2025 Q1 quarter end.
Congratulations to everyone who ignored (as in carefully considered what was being said but did not sell) the naysayers and held on tight through thick and thin. I certainly did and plan to continue to do so. Unless something fundamental changes about the company, BN is a keeper basically forever!
No. of Recommendations: 1
BAM’s market cap is another 90 billion. Prior to spin off in 2023 it would have been entirely part of the then BAM ( and now BN ) market cap.
Their combined market cap today should be compared to the old BAM. Or would that be double counting?
I am reminded of Zoetis spun off from Pfizer. Its market cap now is half of Pfizer. Pfizer also spun off its consumer brands and combined them with Glaxo. Not sure how much that is worth. A Pfizer investor who kept all the spin-offs wouldn’t have done as badly as someone who just kept Pfizer.
No. of Recommendations: 3
BAM’s market cap is another 90 billion. Prior to spin off in 2023 it would have been entirely part of the then BAM ( and now BN ) market cap.
Their combined market cap today should be compared to the old BAM. Or would that be double counting?
The 102 billion market cap I mentioned for BN includes 73% BAM which they own.
The combined market cap, had they not split, would have been 102 + 27% BAM (currently worth approx. 25 b) = 127 billion.
No. of Recommendations: 11
Congratulations to everyone who ignored (as in carefully considered what was being said but did not sell) the naysayers and held on tight through thick and thin. I certainly did and plan to continue to do so. Unless something fundamental changes about the company.
Good work. BN has historically traded at an average discounted level of 30% below their reporting Plan Value when continuing that calculation throughout their past, before they introduced the notion.
Lately, BN traded well below this already 30% discounted level —- but today they are trading exactly at this 30% discount.
So despite the rise in BN’s quote, we are now being quoted our average 15 year price valuation, which itself has been growing around 18% per year accounting for dividends and spinoffs.
The market is getting expensive, but BN is compounding value exceedingly above the market rate (look up the sales per share rise for broad market last 20 years and prepare to he shocked) *and* unlike most firms, now trading at only an average valuation multiple.
So still great investment today relative to what else is around.
- Manlobbi
No. of Recommendations: 2
having sold my first chunk of BN after ~15 years, am not perturbed.
after ~20% reduction , it remains 3x my next largest single equity holding, although this is unfair if brookfield is seen more as a diverse fund. in this case, it would be below my average fund\etf size, but exists along the same duration as my average fund holding period.
there is always an interplay between not needing more growth, and probabilistically lowering portfolio risk and volatility profile.
as noted in the thread, there is also a chance within the next few months\years that BN returns back to its familiar, but weirdly lower discounted range. flatt has noted that if at least one segment is not badly underperforming, they are not taking enough risk. and if this underperformance receives sufficient media, expect the usual sentiment action from retail renters.
