Monday, December 16, 2013
Warren Buffett's company Berkshire Hathway shares relatively cheap now
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. http://www.iex.nl/Aandeel-Koers/330118703/Berkshire-Hathaway-B.aspx
Comments, questions or E-mails welcome: ajbrenninkmeijer (a) gmail.com