Microsoft (MSFT, Financial) co-founder Bill Gates (Trades, Portfolio) and his Bill & Melinda Gates Foundation Trust reduced the stake in Berkshire Hathaway (BRK.B) by 7.21% during the second quarter.
Gates now owns 64,281,549 shares in Berkshire Hathaway.
Berkshire Hathaway has a market cap of $364.6 billion, a price-earnings (P/E) ratio of 14.37, an enterprise value of $396.57 billion and a price-book (P/B) ratio of 1.39.
Headquartered in Omaha, Nebraska, Berkshire Hathaway is a diversified holding company that is led by Warren Buffett (Trades, Portfolio). The company invests in insurance and reinsurance, freight rail transportation, utilities and energy and distribution. Some of its investments are GEICO, Fruit of the Loom and FlightSafety International, and it owns a large stake in The Kraft Heinz Co. (KHC, Financial).
Buffett has amassed a fortune investing in securities, and he is currently one of the five richest people in the world, according to Forbes.com. Buffett attributes much of his success to luck as well as following the investing philosophies and mental models of legendary investors Philip A. Fisher and Benjamin Graham.
According to GuruFocus, Berkshire Hathaway has a 6/10 financial strength rating with a cash-debt ratio of 0.72, ranking it beneath 86% of the companies in the global insurance diversified industry. The company also has an 8/10 profitability and growth rating with an operating margin of 16.21%, ranking it above 79% of the companies within its industry.
During the previous year, Berkshire Hathaway’s stock price has risen by an estimated 9%. Over the previous 10 years the company’s stock price has risen by an estimated 131%.
Below is a Peter Lynch chart which shows that Berkshire Hathaway is trading slightly below its intrinsic value.
Gates is the richest man in the world, according to Forbes.com, with an estimated net worth of $77.3 billion. In 2000, Gates and his wife formed the Bill & Melinda Gates Foundation to aid global health care in developing countries and reduce extreme poverty. The foundation owns 18 stocks with a value of $16.821 billion.
Cheers to your investment success.
Disclosure:Â Author does not own any shares of this company.
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