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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
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Author: Aussi ✭  😊 😞
Number: of 15061 
Subject: Re: BRK Deep Dive by Adam Mead
Date: 05/02/2024 11:35 AM
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Buffett has said that the intrinsic value of a company is the "discounted value of the cash that can be taken out of a business during its remaining life." If you use 4.6% as the discount rate, and 8% as the growth rate for Berkshire's earnings, and assume that the P/E multiple is the same in 10 years, you get a present value of $549. Using a 5% growth rate, you get $415. That seems like a reasonably conservative determination of the lower bound of what we expect from Berkshire.

DTB

I like your PV of $549! :) Could you advise what you used as the starting point for the growth rate of earnings. There has been such a variation over the last 5 years, I am wondering about the starting input value.

Thanks

Aussi
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