We believe that the market currently maintains two overriding concerns with Berkshire Hathaway. First, the company’s size will prevent it from compounding its investment capital at historical rates of return. And second, the company’s shares will drop sharply once Warren Buffett leaves the scene. As for the first concern, although we do not expect Berkshire … Read more
Berkshire Hathaway is a conglomerate holding company owning subsidiaries engaged in a number of business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing. Full report: Berkshire Hathaway, Inc. (BRK.b) Last year (2015) was a difficult year for Berkshire Hathaway. Wall Street focused on Buffett’s lagging performance in … Read more
On November 3rd, Warren Buffet and Berkshire Hathaway went public with their planned acquisition of Burlington Northern (BNI). Berkshire, already owning 26% percent of Burlington’s common shares, plans to pay $26 billion for the remaining 74% of shares using both cash and stock. Berkshire will also assume $10 billion of Burlington’s debt, raising the value … Read more
With the broader markets up 65% off the March 9th lows, there are fewer and fewer attractive investment opportunities to be found today. At today’s price, we believe the valuation in Warren Buffett’s holding company, Berkshire Hathaway, remains compelling. Based on our analysis of the company’s operations through the second quarter of 2009, the company’s … Read more