Subject: Re: Annual report
Appreciate the comments. Can we take another swipe at comparing 5 groves.

For me.

Grove 1: $23.10 AT operating earnings for 2028 FY non manufacturing, service, and retail. Assume P/E of 20.1. Slightly higher due to recent decline in 10 YR treasury, but lower than S&P 500 (non mag 7). Keep in mind Treasury rate of 3.99% implies P/E of 25X for no growth.
Gets per share value of $222.24

I got $23.20b and think of a multiple that I would buy at. I wouldn't buy these businesses at 20x.
Treasury rate is as risk-free as we can get. Earnings yield - real or expected - on stocks has to be higher to compensate for the risk.
I use 15x. A 6.7% earnings yield. Add some growth get to my 10% hurdle rate.
$161 per B

Grove 2: Equities less OXY & KHC stock. Included OXY preferred. $297.7 BB less anticipated taxes.
Gets per share of $117.12

Same, $117 per b share. Jim cuts the Apple stake a bit. I didn't but do see the reasoning.

Grove 3:
KHC, OXY & Berkadia.
Based on current prices.
Gets per share value of $10.23

I had been trying to use earnings, but it's a mess. Using value of $20 billion I get $9 per b share.

Grove 4:
Cash, etc.
I include railroad cash $4 BB
I include YTD estimated retained earnings of $7.1 BB
I exclude reserve of $26.4 BB
Net is $372 BB
Gets per share value of $172.45

I've been copying Jim and deducting 30% of float value. Jim explains it better. It's a similar figure to Bloomstran's maximum annual insurance claims deduction.
I don't include the subs cash - figure they need it, so it's included in their valuation.
I didn't include YTD estimated retained earnings.
Cash & Fixed Income Available for Investment $155 per b share.
Add your YTD estimated retained earnings $158 per b share.

Grove 5
Earned premiums times 3.3% average annual after tax underwriting profit performance per 2024 BRK Buffet annual letter. 2024 was 8% ish and 2025 was 6.5% ish.
So $88 BB earned premiums times 3.3% times P/E of 12.5 (estimated insurance average for peers, much lower than the operating units).
Calculates to $36.38 BB
Gets per share value of $13.43

I copy Jim again. 10 year average has been 1.67% of float. That would be $3 billion in 2025. At 15x that's $20 per b share.

Total share value of $539.03

My total "conservative" IV is $463 with deducting 30% of float value. $488 if don't make that deduction.

Current quote $483. Be careful what you wish for!