Berkshire Hathaway Class B Message Board

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Non-Tech : Berkshire Hathaway Class B

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To: Dave who wrote (1507)	8/4/2003 7:47:44 AM
From: Elmer	of 1652

The reason I like this stock is because of its ability to benefit from the problems due to the excesses of the 90s. Consider that many good public companies took on excess debt and excess capacity during the bubble. The only way out for them now is to merger and/or go bankrupt. BRK has been an active acquirer at reasonable prices so they have and will benefit from this form of rationalization. It also has selectively and benefically purchased distressed debt securities. So, in a way I agree that the market may deteriorate from here but that creates opportunity for both short sellers and vulture investors like Buffett. That is the basis of my core interest. I also don't think most of the Wall Street gang sees BRK as anything other than a closed end investment company which should sell near book. On that basis it is overvalued. But it's the wrong way to view it because BRK's equity holdings in positions such as Coke are less and less material to its financial position and results. It is a conglomerate that will next year (assuming little stock price appreciation from here) be trading at a multiple comparable to the overall market.

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