Monday, December 16, 2013

Warren Buffett's company Berkshire Hathway shares relatively cheap now

BRK.A Chart
BRK.A data by YCharts

Buffett / Berkshire Hathaway will buy the shares from you if they are less than 1,2x book value. The book value in September 2013 was $127000 x 1,2 = $152 000 .

Now January 2014 the book value should have increased to about $134 000. The price that Buffett will pay is now $134 000 x 1,2 = $160 000 and going up by 12% or more per year. So in January 2015 the price Buffett will buy at, should be $180 000. Giving you a return of at least $10/$170 = 6% in 2014 and 12% in the years after that.

You can buy B shares today for 1/1500 of the price of an A share.

Comments, questions or E-mails welcome: ajbrenninkmeijer (a)

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