Whitney Tilson: Analysis of Berkshire Hathaway’s Blowout Earnings | Value Investing News

Whitney Tilson: Analysis of Berkshire Hathaway’s Blowout Earnings

  • The headline numbers for the quarter were startling, with net earnings per share almost tripling from $4.3 billion to $12.0 billion.
  • • Book value per share grew to $217,677 per share, up 3% year to date.
  • Net net, our estimate of intrinsic value, using cash and investments plus an 11x multiple on normalized pretax earnings, is now $348,000 for the A shares and $232 for the B shares, meaning that Berkshire today is trading at a 12% discount to intrinsic value.
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