What Is Berkshire Hathaway Really Worth? A Comprehensive Look

http://ift.tt/1jA1KMT ByYorkville Investor:

Berkshire Hathaway (BRK.A, BRK.B) has elicited much discussion of late. Recent price appreciation since the announcement of its 2013 results has given some investors confidence that the company will resume its 49-year history of outperformance (for more information regarding historical performance, see page 2 of Berkshire Hathaway’s 2013 Annual Report See: here).

But what is Berkshire Hathaway really worth, and how should it be valued? Why has it been consistently able to outperform other conglomerates as well as other insurance entities?

We decided to find out.

As a diversified multi-sector holding company, ascribing a meaningful valuation to Berkshire requires more a rigorous methodology than would be appropriate for most “plain vanilla” entities.

To our knowledge, Berkshire Hathaway is not covered by sell-side brokers. We believe this is likely due to the fact that there exists only limited trading volume in the shares, making it challenging for brokers to

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