Berkshire Hathaway’s 6% stake in Apple (245 million shares as of March 31) is currently valued at $100 billion, or 21% of Berkshire’s market capitalization of $472 billion.
Berkshire Hathaway’s stake in Apple ($100 billion), plus its cash as of March 31 ($137 billion), plus its stock portfolio less Apple as of March 31 ($113 billion) equal $350 billion or 74% of its market capitalization of $472 billion. Therefore, all of its businesses are being valued at only $122 billion.
Since Berkshire’s stock portfolio has very likely appreciated since March 31, which was close to the market bottom, then all of its businesses are being valued at less than $122 billion. Berkshire’s 60+ businesses include BNSF railroad, Berkshire Hathaway Energy, its insurance operations (Geico, etc.), and its manufacturing companies.
David I Kass
Clinical Associate Professor, Department of Finance
Ph.D., Harvard University
Robert H. Smith School of Business
4412 Van Munching Hall
University of Maryland
College Park, MD 20742-1815
Phone: 301-405-9683
Email: dkass@rhsmith.umd.edu (link sends e-mail)
Dr. David Kass has published articles in corporate finance, industrial organization, and health economics. He currently teaches Advanced Financial Management and Business Finance, and is the Faculty Champion for the Accelerated Finance Fellows. Prior to joining the faculty of the Smith School in 2004, he held senior positions with the Federal Government (Federal Trade Commission, General Accounting Office, Department of Defense, and the Bureau of Economic Analysis). Dr. Kass has recently appeared on Bloomberg TV, CNBC, PBS Nightly Business Report, Maryland Public Television, Business News Network TV (Canada), Fox TV, American Public Media's Marketplace Radio, and WYPR Radio (Baltimore), and has been quoted on numerous occasions by Bloomberg News and The Wall Street Journal, where he has primarily discussed Warren Buffett and Berkshire Hathaway. He has also launched a Smith School “Warren Buffett” blog. Dr. Kass has accompanied MBA students on trips to Omaha for private meetings with Warren Buffett, and Finance Fellows to Berkshire Hathaway’s annual meetings. He is an officer of the Harvard Business School Club of Washington, DC, and is a member of the investment and budget committees of a local nonprofit organization. Dr. Kass received a Smith School “Top 15% Teaching Award” for the 2009-2010 academic year.
The Securities and Exchange Commission (SEC) is pushing its testing methodology to include new categories of investment managers, ensuring specific regulations are being followed, particularly with regards to fee... read more
Stock Market Anomalies And Baseball Cards
Joseph Engelberg
University of California, San Diego (UCSD) - Rady School of Management
Linh Le
University of South Florida
Jared Williams
University of South Florida
June 21,... read more
Excerpted from an email which Whitney Tilson sent to investors
1) Over the summer, when 60 Minutes isn’t airing new stories, it typically runs greatest hits from recent seasons, so... read more
Markets are about to shift from a search for yield into a search for safety, a Goldman Sachs report said one day before the S&P 500 hits a record intraday... read more
Preqin survey of almost 400 private equity fund managers finds competition for assets is focused on mid-market buyouts
2016 Hedge Fund Letters
Increased competition for private equity deal opportunities is being... read more
During the fourth quarter the Westport Select Cap Fund (WPSRX)'s R shares rose 9.40%, ahead of the Russell 2000® Index's gain of 8.72%. For the year, the Select Cap... read more
Davis Opportunity Fund: An Update from The Davis Research Team
Q: Please provide an overview of Davis Opportunity Fund.
A: Davis Opportunity Fund, which invests predominantly in U.S.-listed companies, has the... read more
As reported in ValueWalk on February 25, high frequency trading firm Virtu on Monday filed for an initial public offering, seeking to raise $100 million. With a star-studded list... read more
As the world moves to the “Internet of Things,” an interconnected world where cars, home, healthcare, entertainment and security, is all monitored and to a degree controlled remotely, Goldman... read more
In 2007 Warren Buffett entered into a 10 year bet with Protégé Partners that the S&P 500 would outperform a selection of hedge funds over the following ten years. Last... read more