Tren Griffin+ Your Authors @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Aug. 16, 2019 1 min read + Your Authors

"Berkshire has grown its float at an 8% compounded annual growth rate while achieving a negative 2% average cost of float due to its profitable insurance underwriting, while incurring an underwriting loss in only one out of the last 15 years." Ackman

Berkshire has:

Market cap: $490 billion

$122 billion in cash
$208 billion in public securities

490-330= operating companies valued at $160 million? They include "the world’s largest insurance business", and argues Ackman:

Whoops $160 Billion not million would be amount attributed to operating businesses after deducting cash and public securities. BRK can be bought at wholesale rather than retail through Ackman. But reading his letter is free though. What's fair value for the operating businesses?

Clues regarding valuing operating businesses: "For the quarter ending in June, Berkshire posted $6.14 billion in operating earnings, compared with $6.89 billion in the same quarter last year."  How would those operating earnings be valued stand alone?

"AAPL is currently the largest BRK13F portfolio stake at ~24% [of the $208B public equities.] BRK's overall cost-basis on Apple is ~$141 per share.... a ~5% ownership stake in the business." "Top three public stock holdings are ~47% of entire portfolio." 

You can follow @trengriffin.


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