Berkshire Hathaway: A Screaming Buy?

Valuing a $74,000 stock.


Berkshire Hathaway just reported its worst year ever. Meanwhile, the company's A Shares, trading around $74,000 today, are flirting with six-year lows.

Daily Markets' rekindles the often heated discussion of whether Berkshire's stock is actually "cheap," by writing that the stock at this level is an "incredible buying opportunity" for anyone with tens of thousands of dollars on the sidelines. Why? Because Buffett's annual report--released last weekend--doesn't discuss private companies Berkshire bought or loans negotiated.

A few months ago on this blog, I posed the question of how to value Berkshire Hathaway (it was trading around $77,000 at the time.) The post includes hedge fund manager Whitney Tilson's lengthy case for why the stock was a bargain at $84,000.

Also worth checking out is the Berkshire Hathaway Intrisivaluator.