How to Value Berkshire Hathaway 2024 w/ Chris Bloomstran (TIP625)

Stig has invited legend investor Chris Bloomstran from Semper Augustus to teach us how to value Berkshire Hathaway on today's show. Semper Augustus has an outstanding track record with a compounded annual growth rate of 11.5% on equities since his fund's inception on 2/28/1999, compared to 7.6% for the S&P500.
IN THIS EPISODE YOU’LL LEARN:
00:00:00 - Intro
00:01:22 - The impact of holding cash on your portfolio returns.
00:27:07 - How to understand the five different components that makeup stock market returns
00:36:57 - How to estimate the expected return of being invested in the S&P500
00:46:19 - What the intrinsic value of Berkshire Hathaway is
00:52:44 - How Berkshire Hathaway has allocated capital since 2018
🤝 Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig and the other community members: theinvestorspodcast.com/maste...
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▶️ RELATED EPISODES:
- The Vigilant Investor’s Guide to Success in Stocks & Life w/ Chris Bloomstran: • The Vigilant Investor’...
- What Is The REAL Intrinsic Value Of Berkshire Hathaway? w/ Chris Bloomstran: • What Is The REAL Intri...
- Berkshire Hathaway | All you need to know w/ Chris Bloomstran: • Berkshire Hathaway | A...
- Masterclass In Valuation w/ Chris Bloomstran: • TIP346: Masterclass In...
- The Story of Berkshire Hathaway: How Warren Buffett Built an Empire w/ Jacob McDonough: • The Story of Berkshire...
🎧 Listen to our episodes here: link.chtbl.com/TIP-WSB
🖊️ Access the transcript and learn more about the guest here: www.theinvestorspodcast.com/e...
💡 OTHER RESOURCES
- Chris Bloomstran’s website: www.semperaugustus.com/
- Read Chris Bloomstran’s letters to his clients: www.semperaugustus.com/client...
- Buffett resource on CNBC: buffett.cnbc.com/
- Seeking Alpha is a crowd-sourced content service for financial markets. Take control of your financial future - Use our link here for a 14-day free trial: www.sahg6dtr.com/59QC8Z/R74QP/
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ABOUT OUR SHOW 🎙
On We Study Billionaires, we interview and study famous financial billionaires including Warren Buffett, Bill Gates, and Ray Dalio. We teach you what we learn and how you can apply their investment strategies in the stock market.
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[@WeStudyBillionaires]

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[@BaccaratDegen]

These conversations are going to make me a super investor

[@WeStudyBillionaires]

So happy to be helpful on your journey! 💡

[@HaruSakamoto]

Wow this is one of THE MOST INSIGHTFUL videos of all time from Investors Podcast. It amazes me how much reading and detail of bottom-up analysis he has done. I'm definitely starting to read his letters

[@WeStudyBillionaires]

Awesome! Thank you so much for watching. 🙌

[@johnmcquaid7524]

Amazing interview .. and explained in terms that I can understand. Thank-you; truly inspiring! 🇨🇦

[@WeStudyBillionaires]

Glad you enjoyed it! 💯

[@fplbrunoo858]

Here's my hack: BRK discloses its average share buy back price in its quarterly reports. Buffet writes that he only buys back when it's below intrinsic value under conservative assumptions. So I only buy when Mr Buffet buys. Last time he bought back at $357. Loaded up. Look at me now

[@fplbrunoo858]

Love Chris, but I just don't think there's a need to value BRK. Based on his valuations, in theory Berkshire should buy back at current prices, but that's not the case, which shows it doesn't match Buffet's intrinsic value

[@lucasekstrom]

I like that methodology. Will copy it

[@hodexter]

www.barrons.com/articles/berkshire-hathaway-stock-buyback-warren-buffett-253143e3 This though says theyve been buying back at 400+. Don't know. Last add was close to ya

[@fplbrunoo858]

@@hodexter hmm can't see where the 400+ is written

[@hodexter]

Yeah. Figured we'll see in the next report... Still waiting to buy some this year 😅

[@jaycho3241]

Impressive. Thanks for

[@WeStudyBillionaires]

Thanks for watching! 💯

[@catsaddictedtofish]

something worth mentioning would be that Berkshire recently acquired Pilot Flying J and midstream service.

[@WeStudyBillionaires]

Thanks for sharing! 🙌

[@KamilMauel]

A worse year Apple has the more Berkshire outperforms its largest holding. +8pp in 2018 and ~+30pp in 2022 and YTD. Since the start of the relationship in 2016 the iPhone maker has been red in 3 years, the Buffet company in none. The incredible cushion.

[@catsaddictedtofish]

stock portfolio accounts for least 3x% market value of Berkshire Hathaway besides energy and insurance sector. In fact, Apple accounts for least 1x % market value of Berkshire Hathaway.

[@KamilMauel]

@@catsaddictedtofish BRK owns 5.9% of Apple = 0.9 bln shares = $150 bln = 17% of $875 bln BRK market cap.

[@MNSTgrowth]

1 trillion, 50 billion. Divide by 1.45 and then 1500. Still don’t know exactly what the fair value price is for A shares and B shares. 😅 Anyone know?

[@brianbirnbaum9760]

The idea that you need to work 24/7 is complete nonsense, especially when it comes to investing. The reasons are too many to list, but plenty of the greatest investors in the world hold an entirely antithetical perspective. I’m not saying that your way is wrong. But I’m saying your absolutism is just a poor guide for insecurity that if you’re not working you’re falling behind. The author of WHAT I LEARNED ABOUT INVESTING FROM DARWIN fully realizes that at least 90% of financial input is entertainment.

[@constantineandreu9377]

😂😂😂😂😂😂😂😂😂😂😂....I unequivocally agree🤗 the entire financial system is a controlled farce! ✌