original mungerville Posted April 10, 2012 Share Posted April 10, 2012 Berkshire Q1 2012 earnings to equal Apple's Q4 2011 of $13 Billion (+/- 1B): By my calculations, I have the following: 1. $8B pre-tax gain for the Big 4 common invt's plus BAC warrants 2. $2.6B pre-tax gain for other stock investments 3. 1.6 pre-tax gain on derivatives Taking 1,2,3 applying a 20% effective capital gains tax rate (instead of 15% for conservatism) gives me 10B after tax. To this I add $2-3 billion after-tax in other operating-type earnings totaling $13 Billion after tax for Q1 2012 which is equal to Apple's Q4 2012 according to: http://finance.yahoo.com/q/is?s=AAPL. A very big number. When you multiply the new Q1 2012 book value per share by 1.1 (the buy-back indicator) you get $120K for Class A and $80 for Class B shares. Word of caution: all of these gains (and consequently the buy-back level) and then some can reverse if the markets tank. Link to comment Share on other sites More sharing options...
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