Berkshire Hathaway

Ticker
$BRK
Industry
Conglomerate
Type
Compounder
Rating
Not Rated
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Notes

Buffett’s “2 Column Method” for valuing Berkshire
  • Back in his 2011 Annual Report (page 99 if you’re looking), Buffett outlined his Two-Column Method for valuing Berkshire. This involved taking the value of cash and investments on the balance sheet plus a capitalized value for non-insurance operating earnings. (With the caveat that the insurance businesses needed to operate at breakeven-or-better for this approach to be valid.)
Segments — Railroad (BNSF), BHE (utilities + real estate brokerage), Mfg/Service/Retail
Mfg/Service/Retail —
  • Industrial = Precision Castparts, Lubrizol chemicals, IMC cutting tools, Marmon
  • Building products = Clayton Homes, Shaw flooring, Johns Manville roofing, Acme bricks, Benjamin Moore paints, MiTek
  • Consumer = Forest River RVs, apparel brands Fruit of the Loom, Brooks, etc, Duracell batteries
  • Service = NetJets, FlightSafety aviation services, TTI electronics distributor, Dairy Queen, XTRA, CORT furniture, Business Wire
  • Retail = Berkshire Hathaway Automotive (car dealerships), Nebraska Furniture Mart, jewelry businesses Borsheims and Helzburg, See’s Candies, Pampered Chef, etc.
  • McLane = distributor to convenience stores and restaurants

Financials & Valuation

Resources