TREVNI Posted February 28, 2016 Share Posted February 28, 2016 I’m fully on board with the “two column” approach to value Berkshire. That is, per share investments plus some multiple of operating earnings. My question is: Should a figure for deferred taxes be deducted from the per share investments column? My reasoning is, if Berkshire only owned investments – nothing else – would an investor pay 100% of the asset value for the investments? Probably not, they would likely deduct deferred taxes in order to arrive at a “correct” valuation. So by this measure we’d need to adjust for the $25,117 million (page 60 of the 2015ar) deferred tax that would be paid if the investment portfolio were turned to cash. This works out to $15,286 per A share, and would reduce the $159,794 figure shown on page 9 to $144,508. Now, it’s relatively minor, but not insignificant, in my view. Thoughts? Link to comment Share on other sites More sharing options...
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