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Posted

Is the letter usually put up on Berkshire's site right after 4 PM, or later in the evening?

 

I don't remember them specifying a time.  Can you imagine the traffic to their web host at 4:01 if that was the case.  ;D

Posted

From the press release, it is approximately 4:00 p.m.

 

OMAHA, NE—Berkshire Hathaway Inc.’s 2012 Annual Report to the shareholders and its Form

10-K will be posted on the Internet on Friday March 1, 2013, at approximately 4:00 p.m. eastern

time where they can be accessed at www.berkshirehathaway.com. The Annual Report will

include Warren E. Buffett’s annual letter to shareholders and other information about Berkshire’s

financial position and results of operations. Concurrent with the posting of the Annual Report

and 10-K, Berkshire will also issue an earnings release.

 

We'll see how robust the server is.

Posted

What do you think he thinks about when he says:

 

If float is both costless and long-enduring, which I believe Berkshire’s will be, the true value of this liability is

dramatically less than the accounting liability

 

My logic tells me that an endless revolving load is worth 100%. What do you guys think?

 

BeerBaron

Posted

What do you think he thinks about when he says:

 

If float is both costless and long-enduring, which I believe Berkshire’s will be, the true value of this liability is

dramatically less than the accounting liability

 

My logic tells me that an endless revolving load is worth 100%. What do you guys think?

 

BeerBaron

 

My logic disagrees a bit with with yours.  Would you rather have $100,000 or use the $100,000 to purchase a loan of $100,000 with no interest that is long enduring?  The answer for me is I would rather have the $100,000 and not have to ever worry about the $100,000 loan.  Thus it is worth less than 100%.  Having said that, I do think the value is closer to $100% than say 50%. 

 

You also want to make sure not to double count the insurance operations and the float.  If you value the float separately (whether or not at 100%) you then should only put a very conservative multiple on underwriting profits of the insurance operations since it may incur sizable catastrophe losses from time to time.

Posted

The annual report was great! I have a question regaring one of Buffett's calculations (return on unlevered net tangible assets). On page 13 he says:

 

“Viewed as a single entity, therefore, the companies in this group are an excellent business. They employ $22.6 billion of net tangible assets and, on that base, earned 16.3% after-tax.”

 

Based upon the balance sheet for the Manufacturing, Service and Retailing Operations (pg. 12), how does Buffett calculate the $22.6 billion of net tangible assets??

 

Posted

The annual report was great! I have a question regaring one of Buffett's calculations (return on unlevered net tangible assets). On page 13 he says:

 

“Viewed as a single entity, therefore, the companies in this group are an excellent business. They employ $22.6 billion of net tangible assets and, on that base, earned 16.3% after-tax.”

 

Based upon the balance sheet for the Manufacturing, Service and Retailing Operations (pg. 12), how does Buffett calculate the $22.6 billion of net tangible assets??

 

Deduct goodwill from equity

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