It’s Been Awhile: Annual Reports, Starcraft II, Playoff Hockey, and Berkshire Hathaway

I must apologize for having been absolutely MIA for the last month. My attention from blogging was pulled away by a plethora of other interests. Namely, reading, video games, the great outdoors, and hockey. I just had no energy left to focus on writing much with all this going on. We’re leaving on our great American road trip tomorrow, with the Berkshire Hathaway Annual Meeting as the end destination. Come check out what’s been going on lately.

Continue reading

A Quick and Dirty, Back-of-the-Envelope Method for Valuing Berkshire Hathaway

the intrinsic value of berkshire hathawayBerkshire Hathaway is a bit of an anomaly when it comes to conducting a valuation of the business. On the one hand, it is an incredibly complex, and often times secretive, operation where getting exact details of quantitative data can be incredibly difficult. For example, if you peruse the annual reports or 10Ks, the income statement will be presented in a very general sense but not provide details on each individual business unit. However, on the other hand, Warren Buffett has dropped a ton of hints along the way in his annual letters on what he believes is the intrinsic value of the business. Seeing as the most recent annual report has recently come out, Berkshire is on my mind. So let me give you an introduction on how to do a quick and dirty calculation to figure out the intrinsic value of Berkshire Hathaway.

Continue reading