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At $107,300, the stock is trading at 1.09x book value, and a 37% discount to our estimate of intrinsic value of almost $170,000 (see: www.tilsonfunds.com/BRK.pdf). Safe, cheap, and growing nicely (intrinsic value is growing 8-10% annually we estimate) – what more do you want?
This article about why Wall Street’s finest (heavy sarcasm) hate Berkshire (which we continue to buy) has the all-time dumbest – and most revealing – comment by a Wall St. analyst:
“It’s the cheapest that I’ve seen it in a while,” said Tom Lewandowski, an analyst with Edward Jones & Co., who has a “hold” rating on Berkshire shares. “It’s hard for me to get really positive on that.”
Here are some further comments from Wall Street's finest:
“Hopefully we’ll pull out of this, but it looks like it’ll be slow,” said Meyer Shields of Stifel Nicolaus & Co., one of four equity analysts who rates Omaha, Nebraska-based Berkshire at “hold” or an equivalent level. “And every day of slowness, Warren Buffett and Charlie Munger get another day older.” Shields raised his rating to “hold” from “sell” in February.
Disclosure None
About the author:
I am VP of Business Development for Sum Zero (http://sumzero.com), the largest community of buy-side analysts; consisting of over 5,900 hf and mf analysts, and over 3,600 extensive investment write-ups. I have prior experience in a value based pe firm focused on PIPE transactions in micro-caps, and at a value based research firm, which focused on smid caps. In my personal portfolio I have outperformed the market by a cumulative ~48% since 3/2008 (inception date). I can be contacted at jacob(at)sumzero.com for sumzero related inquires. My website is http://www.valuewalk.com/ Visit Jacob Wolinsky's Website
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