This is worth reading


The author doesn’t see Berkshire as a buy right now. Not particularly cheap at 0.99x BV+Float. “I keep holding BRK without attempting to add to my position”

I think it’s cheap, but not back up the truck cheap given my already outsized position. I’m kinda anchored on March 2020 prices…

It is a wonder to me that folks keep trying to come up with a better valuation mousetrap. Buffett already told us how to do it, but somehow folks don’t believe him. They trust him to run the company, but not to communicate how to value it. Fascinating.

FWIW, at the current quote the 5-groves method indicates an earnings multiple of less than 10x for the non-insurance subs.


10x after tax or pre-tax. Sadly, I forget what each segment of the 5 Groves Valuation guidance are and how they stand today

Any clarification greatly appreciated. 10x after tax seems absurdly cheap

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After tax. It’s cheap, but at 10x accounts for only 34% of the valuation.

Breakdown is:
34% Non-insurance subs & partially owned businesses at 10x after tax earnings
48% Equity investments less taxes
18% Cash & fixed income available for investment ($78bn)

Total $268/b share
All numbers from Q2. Rolling 4 quarter earnings.


Excellent. THX very much.