Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (3086)	9/29/2002 9:25:12 PM
From: cfimx	Respond to of 4691

Jurgis, I did it a few years ago but haven't done the exercise lately. One thing about Brk is that it won't get really undervalued or overvalued too often. Here's what I did, however. I went to the back of the AR and looked at the "segment" information. I put a pre-tax multiple of about 15 on the non-inusuance businesses, making sure to add back non-cash amortization expense. Then I multiplied the insurance book value by 2. Then you add those together and also add value for the cash and investments, which I think is about $17b now. Then divide by the number of shares. There's actually one or two pages in the back that presents the keys to the kingdom for the analyst. My point Jurgis is to take another look. It's not as complicated as you might think. Of course, this is only one, very simple way to look at it. There are others.