No. of Recommendations: 0
I did not anticipate or even consider the adverse developments in regulatory returns and, along with Berkshire’s two partners at BHE, I made a costly mistake in not doing so.
No. of Recommendations: 3
Far more important than short-term swings in stock prices is growth in intrinsic value per share and how Berkshire invests its capital. On both fronts 2023 was a good year. By Semper’s math, intrinsic value grew 11.3% and thanks to attractively priced share repurchases advanced 12.8% per A share to $718,579, or $479 per B share. Now here’s the headline: Berkshire’s intrinsic value grew to more than $1 trillion for the first time, reaching an estimated $1,035 billion using an average of Semper’s four valuation methods. Closing 2023 up 15.8% at $542,626 on the A shares, the stock finished the year at 75% of intrinsic value, giving us 33% upside plus annual growth which should match Berkshire’s more than 10% return on unleveraged equity capital.
SA. Bloomstran
