1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Holly LaFon
Holly LaFon
Articles (7135) 

Wedgewood Partners Comments on Berkshire Hathaway

August 31, 2012 | About:

Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) five key non-insurance businesses are all operating at record levels. Housing related business continue to grow, albeit at a snails pace. Warren Buffett continues to report that Berkshire's top-five business units alone are on pace to each set an earnings record in 2012. These fab-five businesses alone will generate +$9 billion, pre-tax. Also, float is set to exceed $70 billion by year-end. We calculate Berkshire's weighted average cost of capital at just 3.25%. The advantages of this cost of capital – at rates lower than most of the world's central banks - accrues enormous structural advantages to Buffett, whom continues to methodically grow Berkshire. Lastly, Buffett's September 2011 announcement of a formal stock buy back policy – Buffett's first ever – ratified our view that the shares of Berkshire were then (and are today) unduly cheap.

From Tony Guerrerio's second quarter letter.

Rating: 4.2/5 (6 votes)


Please leave your comment:

GuruFocus has detected 3 Warning Signs with Berkshire Hathaway Inc $BRK.A.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

User Generated Screeners

andrewgu999revenue growth
andrewgu999high operating margin
DBrizanCDN dividend 25pMar2017
DBrizanCDN dividend 25Mar2017
DBrizanCDN dividend 24Mar2017
dosowsky11 Year Growth ROE
G7dar2Pg4Cwc3RxTpm7z52Wk Magic Global
HOLKLSUTop 10 Gurus Holding and Addin
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)