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.
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