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: [email protected] (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.
Capital Economics’ European Economics Update this week focuses on the threat of a Grexit and the markets relaxed attitude towards the Grexit threat.
Rising expectations
Rising expectations of a Greek exit... Read More
Third Avenue Fund's Marty Whitman on Ben Graham and high frequency trading (HFT).
Letter from the Chairman
(Unaudited)
Dear Fellow Shareholders:
High Frequency Trading (“HFT”) has been on the front pages of the... Read More
China’s currency is no doubt influenced by its central bank’s intervention, but recently, as the potential for a 2015 rate hike moves off the table, so too has the... Read More
A Securities and Exchange Commission judge said on Wednesday that she will restart administrative proceedings against hedge fund billionaire Steven Cohen following prosecutors' withdrawing their request for a two-year... Read More
In his Q1 2008 shareholder letter, Michael Burry discussed Nassim Taleb’s Black Swan Theory and why he believes markets are anything but random. Here’s an excerpt from the letter:
Q2... Read More
ETFGI, the leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, today reported assets invested in ETFs/ETPs listed globally reached a new record high US$3.408... Read More
First Eagle's Matthew McLennan On The Recent Market Turmoil
H/T Dataroma
After a period of very low volatility and gradually rising risk-asset prices, the past week witnessed a somewhat dramatic rout... Read More
This may surprise people, but accounting isn’t a black and white endeavor—there’s actually a lot of gray area—particularly when you deal with accruals and estimates for future events. This... Read More
“America will be open for business very soon,” said President Trump on March 23, just a week after local authorities began issuing stay-at-home orders.
Q1 2020 hedge fund letters, conferences... Read More
Introduction:
I think you all know who David is. He’s of course the benefactor of our school and what you probably don’t know and may not know, is that he... Read More
