Valuing Berkshire

Tables and Comments

• 19 year Table of Purchase and Sales of Equity Purchases

• Look-through Earnings

Client Letter Comment

• Client Letter March 2000

  "Berkshire Hathaway" stock comment. This stock's price offers a compelling value at today's prices. Buy now. This is one decision that will last for ten years.

• Client Letter October 2001

  "Ben Laden and Berkshire Hathaway" What happens to the intrinsic value of an insurance company when it has to pay $2.2 billion in claims?

• Client Letter June 2002

  "Owner Earnings, Cash Flow and Berkshire Hathaway" I have no clear idea how to value the float when computing intrinsic value, but I am fairly confident of two things: 1. money is going to keep pouring into Omaha, and 2. I am not sure that any future attempt to value Berkshire based solely on reported earnings will be satisfactory for me.

• Client Letter February 2003

  "Berkshire Hathaway Growth in intrinsic Value" Buffett's $45,000 offer in 2000 was an important marker for intrinsic value, because we know that his figure must have represented a substantial discount to the intrinsic value of the stock at the time it was made. This is an attempt to adjust that price for the growth of the last three years.

• Client Letter March 2003

  "Cover Fire" Sitting on the sideline may be no fun, but it is hardly and accurate description of what has been going on at 1440 Kiewit Plaza for the last year. I have revised my table of recent acquisition activity to include figures for Junk bond purchases and activity in the equity market (see below). If activity is the definition of fun, then Warren has been having a ball. Reading the first couple pages of the Chairman's Letter I get the impression he is tap-dancing like crazy. Certainly 72 years has not dulled his sense of humor.