For my money, Tilson provides the best recap of Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) you can get. He was on CNBC following Warren this morning and does a gracious job handling some silly questions.
- Blown away by the performance of Berkshire’s businesses
- Believes Berkshire is worth almost $180k per A share
- Can’t believe the stock price is down today
- Trading at 2.5 times the earnings of its operating businesses when you back out the investment portfolio
- Thinks it is trading at 65 cents on the dollar, believes the share repurchase program puts a floor under the share price
- There is no answer to what the catalyst will be to close this gap to intrinsic value
- Doesn’t want a dividend because he thinks Buffett is still at the top of his game and can do great things with the money
- Thinks Buffett thinks Berkshire is wildly undervalued
- $60 billion of cash and short term bonds, Buffett could buy back 20% of the outstanding shares
- Glad the successor has been picked but not named, would want to know if Buffett was leaving one year from today
- A healthy 81-year-old has another 12 years to live according to an actuarial table so Buffett will likely be running this company for 5 to 10 years
- Tilson is buying Berkshire today
- Tilson would be comfortable with 100% of his money in Berkshire for the next five years
- Blown away by the performance of Berkshire’s businesses
- Believes Berkshire is worth almost $180k per A share
- Can’t believe the stock price is down today
- Trading at 2.5 times the earnings of its operating businesses when you back out the investment portfolio
- Thinks it is trading at 65 cents on the dollar, believes the share repurchase program puts a floor under the share price
- There is no answer to what the catalyst will be to close this gap to intrinsic value
- Doesn’t want a dividend because he thinks Buffett is still at the top of his game and can do great things with the money
- Thinks Buffett thinks Berkshire is wildly undervalued
- $60 billion of cash and short term bonds, Buffett could buy back 20% of the outstanding shares
- Glad the successor has been picked but not named, would want to know if Buffett was leaving one year from today
- A healthy 81-year-old has another 12 years to live according to an actuarial table so Buffett will likely be running this company for 5 to 10 years
- Tilson is buying Berkshire today
- Tilson would be comfortable with 100% of his money in Berkshire for the next five years