Grove Valuation

BRK Valuation Per B % of
Total Share Value
Grove 1 372.05 168.91 46.2%
Grove 2 315.81 143.37 39.2%
Grove 3 16.73 7.59 2.1%
Grove 4 89.68 40.71 11.1%
Grove 5 11.51 5.22 1.4%
Total 805.77 365.81 100.0%

CP / Discount 292.07 20.2%

Implied PE Grove 1 209.46 10.16

This is what I get from the recent Q.
I add Grove 5 for underwriting gains or losses.
If you assume Groves 2 - 5 are direct calculations then I adjust grove 1 to determine an estimated implied PE ration. Which for me is 10.16. My grove 1 calc assumes a PE of 16.

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“Total 805.77 365.81 100.0%”

and yet only a sucking the thumb level of buybacks

Looks like they re-purchased another $1.46B of stock since July 1st though.

Looks like they re-purchased another $1.46B of stock since July 1st though.

I don’t think that is correct. Quarter end share count was approx. 2.20269 Billion B-share equivalents and 7/26 share count was approximately 2.20101 B-share equivalents.

So likely just under half a billion dollars worth - something like $470 million worth depending on price.

Hard to explain and incomsistent with buying previously at $325.

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I should add I was sloppy.

This is based on the portfolio valuation as of today. Not June 30th. This impacts grove 2 Mostly.

I show Investments up $33 BB since QE. Adding $25.5 BB after tax or $12.5 per share.

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FWIW…

‘4 Groves’ $316/b share using 15x non-insurance op earnings, $78Bn available for investment.
That’s 1.5x last known book value.

Increasing the portfolio value to $342Bn (don’t double count KHC) gives $322/b share.
https://www.cnbc.com/berkshire-hathaway-portfolio/

Look through $317/b share using 15x on all earnings.

Shareholders Equity + Float + 1/2 Deferred Taxes $285/b share.

2022 Buybacks average prices: Q1: $316 (highest $323) Q2: $284 (1.36x book)

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You can’t use CNBC numbers without some adjustment.

Do you adjust for KHC, OXY preferreds or options, or foreign investments. If so, what are your adjustments?

Thanks

You can’t use CNBC numbers without some adjustment.

Do you adjust for KHC, OXY preferreds or options, or foreign investments. If so, what are your adjustments?

I don’t double count KHC as noted. I don’t bother adjusting for the rest. Too much like work.

My ‘4 Groves’
Using Q2 portfolio: $316/b share
Using the CNBC numbers ($342Bn): $322/b share
Using your adjusted number ($353Bn): $326/b share

A 3% spread.