Berkshire Third Quarter 10-Q

[BRK7]

http://www.berkshirehathaway.com/qtrly/3rdqtr10.pdf

 

 

[treasurehunt]

Book value per share up 7.6% since the beginning of the year to an all-time high of 90,823.

Index puts lost 700 million pre-tax even though indices all went up (loss due to decline in the risk-free rate and the dollar's drop against other currencies). This means little, however.

BNSF is chugging along nicely -- over 1.1 billion in pre-tax earnings this quarter.

GEICO continues to kick butt with decent growth and a combined ratio of 92.

Netjets was profitable again this quarter.

Looks like Buffett bought another $460million or so of Wells Fargo.

31 billion in cash with more coming in thanks to the Swiss RE repayment and the impending Goldman repayment.

 

Things look good with Berkshire...

[Hershey]

Under Assets - Insurance and Other Cash, Equity Securities, Fixed Maturity Securities, and Other equals 147B.  (Yes, I include float in this number.)  Today mkt cap of 205B.  Can buy operating assets of entire company for 58B. And this company makes 200M a week in FCF.  Seems very cheap to me . . . again.  (Disclosure - Long and at my % limit.) 

[Guest Bronco]

Question - if BRK grew by 25% per year, how many years would it take to equal the market cap of the rest of the S&P 500 at today's valuations? (and I have no idea)

 

BRK is clearly doing well and will always do well under da man, but the valuation is the issue for me.  Not that it is expensive, I just think other things will go up more/faster.

 

 

[shalab]

BRK is clearly doing well and will always do well under da man, but the valuation is the issue for me.  Not that it is expensive, I just think other things will go up more/faster.

 

Hi Bronco - can you name a few companies in your stable of holdings that you think will go up faster?

 

[Guest Bronco]

Shalab - when you say stable, you give the illusion of many prized horses.  In my "stable", maybe more likely just a couple donkeys.

 

I think BRK is great but probably like many others I don't think the stock price can grow by leaps and bounds.  But my point is that it is a teriffic company and there will probably only be one Buffett, whom I labeled da man. 

 

I like Loews right now b/c it is cheap and there are good assets.  I think the market in general is a little toppy in here, but that is just me.  Loews seems to have trouble busting through $40, unlike myself next year.  But while not blessed with intelligence or good looks, I do have patience.

[Guest Bronco]

Shalab - sorry for all the sarcasm - at the right prices, I also like AHL BH GOOG AAPL DECK CY

 

Copied off Parsad and bought RRGB after it got crushed.

 

 

But I am long Loews for now b/c it is safe and stable, and undervalued IMO.  More so than BRK, but again, just my opinion.  And with Loews, you can't beat the <1% dividend.

 

 

 

 

 

 

 

 

[Guest Bronco]

Shalab - I may be right, may be wrong on BRK.

 

But if you believe I am wrong, I just looked at the $80 2012 leaps (calls).

 

Trading at or below $10. 

 

I would have a tough time buying this call.  However, I wouldn't mind selling an $85 call if I owned the stock. 

 

Overall - it appears the market is not expecting BRK to run, so you may have an opportunity if bullish. 

 

Best of luck.