Longtime shareholders of Berkshire Hathaway know that Warren Buffett hardly ever comments directly on his assessment of the company’s intrinsic value. In an interview with Bloomberg at today’s special meeting of shareholders, Mr. Buffett makes an exception to his usual silence on the matter when he was asked about issuing shares of Berkshire to pay for part of the Burlington Northern transaction. Read this article for more details and a link to the video.
In a CNBC interview this morning prior to the special meeting of Berkshire Hathaway shareholders, Warren Buffett comments on a number of topics including the Obama Administration’s proposed bank tax. Mr. Buffett does not believe that banks are making “obscene profits” and companies that have already repaid TARP funds should not be forced to effectively pay for bailouts at Fannie Mae and Freddie Mac. Read this article for more details and to view the video.
The Financial Times Lex Column this morning highlights a trend that Berkshire Hathaway shareholders have been aware of for some time: The Price/Book Value ratio has been steadily falling over the last several years and is now at levels unseen since the early 1990s. Read this article for more details.