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Strategies & Market Trends : Buffettology
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To: Paul Senior who wrote (4648)12/22/2019 10:26:36 AM
From: Spekulatius1 Recommendation

Recommended By
Jurgis Bekepuris

   of 4690
 
Re BRK

Aren't the $220B accounted for in the book value? You're paying 20x earnings where part of the earnings are interest and dividend income. If that's important or significant, why not just buy WFC of some other of his holdings at p/e much less than 20x and get the dividend there at the much lower p/e?

Yes, the $220B in investment are accounted for in the book value, but you were talking about the PE ratio and I was pointing out they the PE ratio doesn’t account for investment part of BRK, unless you use something like look through earnings.

Regardless of what method one uses (Morningstar method, Aquamarin fund valuation letter etc) , you will typically find that BRK trades somewhat cheap at probably around 0.8x fair value.
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