Berkshire Hathaway: Intrinsic Value (Part 4)


A last look at Berkshire’s intrinsic value

From earlier post, part 1 to 3, the following values for the Berkshire A-share have been calculated:

  • Post 1: Book value per share – $138,426 (as of Q1 2014)
  • Post 2: Adjusted book value per share – $205,604 (as of Q1 2014)
  • Post 3: Two-bucket approach – $220,413 (as of Q4 2014)

See chart below for a summary of historical values for the three different metrics above.


From the calculations in earlier posts an intrinsic value in the range of $200,000 to $225,000 seems reasonable.

Price per A-share as of today is approximately $191,750, implying a margin of safety in the range of 4%-17% depending of where in the value range you look. A fair price, but not a bargain at the moment.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. This article is informational and is in my own personal opinion. Always do your own due diligence and contact a financial professional before executing any trades or investments.


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