The odds of a stock repurchase at Berkshire Hathaway may be increasing as Berkshire’s stock price declines and a return of capital might be mandated due to the five year earnings test. In this article, we look at the likely implications based on Berkshire’s last published book value and an estimate of current book value.
Berkshire Hathaway appears almost certain to fail Warren Buffett’s five year earnings retention test when the 2013 annual report is released in February. We assess the validity of the test as well as the implications for Berkshire Hathaway if Mr. Buffett decides to return capital to shareholders.
Four years have passed since Berkshire Hathaway announced that it would acquire Burlington Northern Santa Fe in a cash and stock transaction. This article looks back at the transaction and attempts to determine whether it was a good deal for Berkshire.
Berkshire Hathaway’s share price is approaching $150,000 for the first time in over five years. Does this round number have any particular meaning from a valuation perspective? This article takes a brief look at the question.
Berkshire Hathaway: In Search of the “Buffett Premium” was published on March 1, 2011 shortly after the release of Berkshire’s 2010 annual report. The 118 page report was originally offered for sale on this website. However, the passage of time has made the material somewhat out of date since it does not contain data beyond 2010 and the analysis has not been updated to account for significant events since early 2011. As a result, we are now pleased to make the report available free of charge.