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 However, the passage of time has made the material somewhat out of date since it does not contain data beyond 2010 and the analysis has not been updated to account for significant events since early 2011.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.
In this article, we present the story of a fictional Berkshire Hathaway shareholder who purchased shares ten years ago and is now evaluating stock price and business performance over the past decade and assessing Berkshire’s prospect for the next decade.
The Rational Walk is pleased to make our report on Berkshire Hathaway published in February 2010 available to readers free of charge! The analysis was published shortly after the release of Berkshire Hathaway’s 2009 annual report. Although the analysis is over a year old, the historical background and valuation approach may be useful for readers.