Parsad Posted August 7, 2009 Share Posted August 7, 2009 $3.3B in net earnings for the 2nd Q. Cheers! http://www.sec.gov/Archives/edgar/data/1067983/000115752309005813/a6021509.htm Link to comment Share on other sites More sharing options...
philassor Posted August 8, 2009 Share Posted August 8, 2009 book value increased 15 % during Q2 and by 4% ytd. July boost in equity value obviously not accounted for. Stock still trading cheap at today's price. :) Link to comment Share on other sites More sharing options...
basl1 Posted August 10, 2009 Share Posted August 10, 2009 Does anyone care to comment on berkshires numbers? Anyone buyinhg? Selling? Link to comment Share on other sites More sharing options...
arbitragr Posted August 10, 2009 Share Posted August 10, 2009 Does anyone care to comment on berkshires numbers? Anyone buyinhg? Selling? Derivative gains. Outlook is great, recovering housing, and GE should recover. However price is fair. Link to comment Share on other sites More sharing options...
drog Posted August 10, 2009 Share Posted August 10, 2009 At $103,400 per Class A share, the valuation is 1.4 times the June 30, 2009 book value. In recent years, the stock has tended to gravitate toward 1.5 times book value – while trading in a wide band around that level. Some would have us believe that this makes Berkshire overvalued. In contrast, I believe that book value understates the intrinsic value of Berkshire since the company has many terrific operating businesses that were purchased a long time ago. Buffett’s valuation methodology is to separate the business into two parts, insurance and other. He values the insurance business at a level equal to the value of the cash and investments that it holds (currently $83,530 per share). For the operating businesses, he uses an unspecified multiple of pre-tax operating earnings (excluding investment income). For the 12 months ended June 30, 2009, pre-tax earnings were $3,070 per share. This means that the market is applying a 6.5 times multiple to these operations, which is certainly too low (103,400 less 83,530 divided by 3,070). A level between 10 and 13 times is probably appropriate given the high quality and unlevered nature of the select group of businesses – with even higher multiples warranted when earnings are cyclically depressed as they are now. This means that they stock is worth at least $114,000 (10 times) and likely in the neighbourhood of $123,000. So I believe Berkshire is still very good value at today’s price. Link to comment Share on other sites More sharing options...
basl1 Posted August 12, 2009 Share Posted August 12, 2009 Did this report give any idea of new berkshire purchases? Link to comment Share on other sites More sharing options...
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