Jump to content

Berkshire Third Quarter 10-Q


BRK7

Recommended Posts

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...

Link to comment
Share on other sites

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.) 

Link to comment
Share on other sites

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.

 

 

Link to comment
Share on other sites

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?

 

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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.

 

 

 

 

 

 

 

 

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...