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Whitney Tilson Update on Berkshire Hathaway

December 12, 2012 | About:
Mr. Tilson sent the following note to his followers this morning on the news of the Berkshire share repurchase and updated his Berkshire Hathaway presentation slides, now pegging intrinsic value at $180,000 per Class A share.

Big news from Berkshire this morning – it raised the share repurchase limit from 1.1x book to 1.2x and made a $1.2 BILLION repurchase in ONE transaction!


Omaha, NE (NYSE: BRK.A; BRK.B)—Berkshire Hathaway has purchased 9,200 of its Class A

shares at $131,000 per share from the estate of a long-time shareholder. The Board of Directors

authorized this purchase coincident with raising the price limit for repurchases to 120% of book

value. Berkshire may purchase additional shares in the market or through direct offerings at no

more than 120% of book value.

Buffett just put a floor on the stock of $134,000 (1.2x end of Q3 book value of $111,718 is $134,062) – yet right now it’s trading for $134,000. Go figure. Needless to say, I’m even happier having this as my largest position – and added to it this morning the moment I saw the news.

Berkshire Hathaway Presentation-T2 Partners-12!12!12 (1)

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