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Old 12-19-2005, 02:45 PM
adios adios is offline
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Default Do Berkshire-Hathaway Shares have a Buffet Premium?

We've discussed Berkshire-Hathaway in the past and there are those that feel that both classes of stock have a "Buffet" premium i.e. if Warren Buffet were out of the picture the multiple would be much lower. I believe that this determination is made by looking at the companys that are in the Berkshire-Hathaway fold and comparing the multiples of similar competing companys. Just thought I'd throw that out for discussion.
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Old 12-19-2005, 02:59 PM
buffett buffett is offline
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Default Re: Do Berkshire-Hathaway Shares have a Buffet Premium?

[ QUOTE ]
there are those that feel that both classes of stock have a "Buffet" premium

[/ QUOTE ]
If one does, they both do. B=A/30.

These guys would disagree, though.
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Old 12-19-2005, 04:09 PM
Peter666 Peter666 is offline
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Default Re: Do Berkshire-Hathaway Shares have a Buffet Premium?

I hope the Buffet Premium is true because it will make the stock cheaper when he dies, thus making it a great time to buy it.
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Old 12-19-2005, 10:35 PM
Evan Evan is offline
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Default Re: Do Berkshire-Hathaway Shares have a Buffet Premium?

[ QUOTE ]
I hope the Buffet Premium is true because it will make the stock cheaper when he dies, thus making it a great time to buy it.

[/ QUOTE ]
I agree with the sentiment that the price will drop when Buffett passes. Berkshire's other managers are top notch though, so I think a better sescription would be to call its price drop a Buffettless discount.
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Old 12-25-2005, 04:22 PM
Ray Zee Ray Zee is offline
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Default Re: Do Berkshire-Hathaway Shares have a Buffet Premium?

if there is a buffet premium which i think so, then when he goes or retires the stock will go down. but it will go down to its true value and that makes it fairly valued so it does not become a good buy. the time it may be a good buy will be maybe the day or two after he dies and it drops below that price. before it settles on its true value.
or you can short it upon suspecting he is on his last leg.
personally i dont like holding anything that is priced artificially high.
except of course beanie babies or x boxes.
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Old 12-26-2005, 05:53 PM
buffett buffett is offline
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Default Re: Do Berkshire-Hathaway Shares have a Buffet Premium?

So, if (a) you don't like Tilson's 'investments + 12x EBT' valuation or the other 2 methods he presents, and (b) you don't think slide 11 of his presentation (above) is a relevant way to think about BRK's value, .....how do you value BRK, and what value do you come up with?
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Old 12-28-2005, 10:00 PM
Tzak Tzak is offline
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Default Re: Do Berkshire-Hathaway Shares have a Buffet Premium?

Not that I follow him at all,but isn't his whole idea is let companies like Gilette and Coke rum themselves.
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