My Stock Holdings 2016

posted Mar 4, 2016, 8:30 PM by Intelligent Investor   [ updated Mar 1, 2017, 2:12 PM ]
View Analysis: My Stock Holdings 2016

Added Berkshire Hathaway Class B (BRK.B), Warren Buffett announced in his letter to shareholders that Berkshire's Intrinsic Value is well over the company's Market Capitalization. Buffett's calculation of Intrinsic Value goes like this:

  Total Equity (Shareholders' Equity)
 +  Treasury Stock
 +  Appreciation in value of Long-Term Investments such as Coke, Wells Fargo, etc.
 +  Appreciation in value of Assets such as the acquisition of GEICO, General Re, Burlington Northern Santa Fe, etc
 =  Intrinsic Value

Because of accounting rules, stock buybacks is recorded as negative Treasury Stock. Also because of accounting rules, Long-Term Investments and Assets is also recorded At-Cost. The appreciation of Buffett's investments in Coke, Wells Fargo, etc. is not recorded in the Balance Sheet. Neither is the appreciation in the value of GEICO, General Re, Burlington Northern Santa Fe, etc.
 
Figuring out how much Berkshire Hathaway's appreciation in stock investments as well as company acquisitions is a long, tedious, and complex calculation. But if you do the math, it can be estimated that Berkshire's Intrinsic value is over $400 Billion. Their current Market Cap is only at around $350 Billion. Therefore, their stock is a good deal at this point.

Disclosure - We own the following stocks:
Wells Fargo (WFC)
IBM (IBM)
John Deere (DE)
United Healthcare (UNH)
Wabco (WBC)
Walmart (WMT)
Chicago Bridge and Iron (CBI)
AT&T (T)
Viacom (VIAB)
Berkshire Hathaway Class B (BRK.B)
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