The Rational Walk is pleased to announce the availability of Berkshire Hathaway: In Search of the “Buffett Premium”. The report takes a close look at management succession issues in the context of a careful examination of the drivers of intrinsic value. Read this article for more information.
Warren Buffett is not a proponent of using the concept of “synergies” to justify acquisitions and generally encourages Berkshire Hathaway subsidiaries to operate independently. Business unit managers, or “all stars” as Mr. Buffett referred to them in his biennial letter
Berkshire Hathaway’s book value per share grew by 13 percent in 2010, slightly behind the 15.1 percent total return of the S&P 500, and stood at $95,453 per A share as of December 31, 2010. Although Warren Buffett and many Berkshire shareholders believe that Berkshire’s intrinsic value far exceeds book value, changes in book value for any given year may be considered a rough proxy for intrinsic value progress. Read this article for more details.
Warren Buffett and Charlie Munger have made it a habit to never directly state their estimates of Berkshire Hathaway’s intrinsic value. Due to the fact that intrinsic value estimates are heavily dependent on assumptions made regarding the future, even Mr. Buffett and Mr. Munger come up with somewhat different estimates of Berkshire’s intrinsic value. Read this article for new insights on Berkshire’s intrinsic value based on Warren Buffett’s 2010 letter to shareholders.