The groundwork for a smooth and successful transition is already in place at Berkshire Hathaway. - Morningstar Equity Research

The groundwork for a smooth and successful transition is already in place at Berkshire Hathaway.

The groundwork for a smooth and successful transition is already in place at Berkshire Hathaway. - Morningstar Equity Research
The groundwork for a smooth and successful transition is already in place at Berkshire Hathaway.
Published Dec 29, 2016
35 pages — Published Dec 29, 2016
Price US$ 400.00  |  Buy this Report Now

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Brief Excerpt:

...Our fair value estimate for Berkshire Hathaway s Class A shares is $255,000 per share, which is equivalent to 1.6 times Berkshire s reported book value per share of $163,783 at the end of the third quarter of 2016. Based on our estimates for book value per share at the end of 2016 and 2017, our fair value estimate is equivalent to 1.5 and 1.4 times book, respectively. We use a sum-of-the-parts methodology to arrive at our fair value estimate for Berkshire, valuing the different pieces of the firm separately and combining them to arrive at an estimate for the whole company. We believe Berkshire s insurance operations are worth $85,000 per Class A share, with improved longer-term expectations for underwriting results (primarily for its combined reinsurance arms) being augmented by better near-term investment portfolio performance. We value Berkshire s investment in Kraft Heinz separately from the company s insurance operations, believing it to be worth $14,600 per Class A share. Our estimate...

  
Source:
Document ID
0P0000063T_20161229_INSU
Ticker
Primary ISIN
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Report Type
Institutional Company Report
Company
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MLA:
Morningstar Equity Research. "The groundwork for a smooth and successful transition is already in place at Berkshire Hathaway." Dec 29, 2016. Alacra Store. Jun 26, 2019. <http://www.alacrastore.com/storecontent/Morningstar-Equity-Research/The-groundwork-for-a-smooth-and-successful-transition-is-already-in-place-at-Berkshire-Hathaway-2064-135540>
  
APA:
Morningstar Equity Research. (2016). The groundwork for a smooth and successful transition is already in place at Berkshire Hathaway. Dec 29, 2016. New York, NY: Alacra Store. Retrieved Jun 26, 2019 from <http://www.alacrastore.com/storecontent/Morningstar-Equity-Research/The-groundwork-for-a-smooth-and-successful-transition-is-already-in-place-at-Berkshire-Hathaway-2064-135540>
  
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