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Non-Tech : Berkshire Hathaway Class B

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To: Benkea who wrote (1299)1/24/2000 5:09:00 PM
From: Jacques Newey  Read Replies (1) of 1652
 
Benkea- Sorry, I am an engineer, not an accountant. Let me know if my logic is off here.

Assumptions:

1.) Your estimate of Intrinsic Value for Brk.A = $60,000/share.
(I thought you posted this number on Yahoo thread, maybe I am wrong?)

2.) Intrinsic Value > Current Book Value for BRK.

3.) From your previous post I garnered that the only "hidden" or understated value in BRK would be in understatement of goodwill.

Therefore I concluded that the understated value (oops I didn't post that) was equal to the understated goodwill. Maybe I found my error.

How about this?

Understated Goodwill = $60,000 - Book Value (all BRK.a per share basis).

I need to do some more reading. I still don't have a good feel for goodwill. I do know that goodwill was one area where WEB deviated from Graham.

I feel a bit like a kindergardener in grad school. Thanks for your help.

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