I read ever word of Warrens letter, it gave me the impression that it was written by a man that was at the very apex of his profession. Thats for posting Sven
Nice video. But things to point out are: 1- the position in Apple is very large. And Apple is very expensive atm and buying BRK or S&P500 now seems silly. 2- the largest advantage, as a foreigner, of BRK vs S&P500 is that Berkshire doesn't pay dividends (which are taxed at 30% for foreigners) and the S&P500 pays dividends which must be reinvested after taxes.
@@unboxing4319 Because Sven thinks it will continue to grow. What does it matter what the price is? Price is just a number - high or low. What matters is what the stock will do in the future. If you bought 10k of Tesla stock at all time highs 10 years ago you are now a millionaire.
Apple isn't that large . You need to add the stock portfolio of 370 billion, the operating side which is 534 billion , and add cash of 167 billion. The other aspect is the cost basis of apple is $35.00 a share too, So Berkshire total assets are now 1072. Apple is now about 165 billion out of the 1 trillion and 72 billion in change
I'm afraid that the right method to valuate that company is the Price/BookValue (it is not an oppinion, it is actually what Buffet says), and that ratio is above the average. So... it is not currently cheap.
Great video as always. I bought Berkshire at $307 and i dont think i will sell in my lifetime. As you mentioned Sven, Berkshire is a better buy than the S&P over the long term. Buffett has mentioned that the returns going forward will probably not be spectacular, given the size of the company, and the rich valuations of many stocks on the S&P. I however believe that the opportunities will present themselves, and Berkshire will be in a cash flush position to take advantage.
Good lessons. Someone in a discussion said to me, I am waiting untill Warren Buffet dies so the stock will drop in value. I laughed at him for saying such a silly thing. 1 Because it is already a great stock, don't wait for it and 2 "don't you think that what you are doing is trying to find a reason for buying something that is properly valued and others are thinking the same". He than laughed in my face for saying stupid things and I had to answer with "ignorance is bliss". Thanks Charlie, Warren, Lynch, Kahnemann, Sven and so on and on... teaching lifelong lessons are more important.
Leadership transition has been carefully planned over many yrs. This letter was prob in part to assure shareholders esp BRKA. His successor has been in place for yrs. WB obv oversees but now mostly face of BRK. Mult division global corp.
@InvestingWhy does it matter as a long term or quality investor? Buffet has expressed his intentions for Berkshire Hathaway's future. Post-Buffett era may evolve over time and will ultimately be determined by the board of directors and the executives who succeed him. But its principles are too stay and no fear is needed to have already invested a part of your portfolio into this company. This is not FOMO and is not a gamble, the company is just great and is here to stay. Without Charlie and without Warren, they have done great in building it. The price to risk is priced in, his age is not a risk. I need counsiling from Benjamin Graham for this subject...
In your video in October 20th 2018 you said the same thing. Im glad i did not sell my S&P 500 to buy Berkshire. S&P 500 crushed Warren Buffet since then.
Another great video Sven. But there is a certainty that not even Mr. Buffet can overcome. He is 93 years old. What happens when he inevitably passes away? Will BRK management and investment policies change, what will be the impact on its investors who have engaged in a culkt of personality for so many years?
I have never bought Berkshire because of Warren's age, the risk there for me is just that in 10-20 years the company will be not the same, because there will never be another Buffet.
He has a wonderful team that knows what they're doing. If Buffett is gone Berkshire is still on solid ground because it owns well diversified businesses that are not easily disruptable, thanks to Buffett.
Being risk averse is very difficult when there's a lot of mania in the stock market (like now). But thats why their balance sheet is as good as it is. I liked his comments on Wall St. Made me think about the AI hype right now. It used to be blockchain. Now it's AI. Also really liked him talking about not liking his underwriters to be optimists. Hadnt thought of it like that!
Thank you Sven, I agree 99%. 1% is that I don't see a S&P500 Etf as a riskier investment, it is just overpriced and there will be a lot of volatility, but it is well diversified and there are a lot of strong business there with solid earnings. BRK is better, but sooner or later will have a change at the CEO spot (I would like Warren there forever, but it's not possible), and we don't know how Hamburg and Co will operate; of course well, as BRK school is, but there will "never" be another Warren Buffett.
Sven I like your videos. I bet you are being discriminated against because of your foreign accent. If you spoke English without an accent I bet you'd have a lot more subs. I'm not saying this as a criticism. I think you're being discriminated against. I am enjoying your content. Keep up the good work.
Better said, BRK WAS a buy in September 2022, March 2020 … now it’s just another expensive stock which exposes buyers to a tremendous risk, but anyway, brokers need to make money too
Thanks for the video Sven. Though I think you make on mistake. You divide the market cap by the operating earnings to come to a PE. In itself that make sense, but Berkshire also owns a sizable investment portfolio of around $350 billion. Dividends from that portfolio are included in the operating earnings, but value appreciation of the portfolio itself is not. Excluding dividend, that portfolio of stocks (including Apple etc.) should also yield at least a percent of 5 in the long run. That means another $15-20 billion of earnings that lowers the PE ratio of Berkshire significantly.
Sven you do a great job breaking it down. I’ve owned BRK since 1999 and was fortunate enough to go to Omaha in 2018 for the annual meeting. He kept pounding the table saying how cheap the stock was. I was lucky enough to be in a transition period in my life and bought several several shares on margin and just closed out my margin account with near after taxes and margin interest. His advice has changed my life and put my family on firm financial footing for years to come!!! Thanks for the videos and news letter
I don't like using PE ratio and comparing BRK's operating earnings to market cap. You have to take into account the look-through earnings of the portfolio of businesses which adds about ~6% of earnings on $350bn = $21bn for a proper earnings number of 21+37=$59bn or a more reasonnable adjusted PE of 15.25. Warren keeps saying that these look-through earnings will certainly materialise over the years, albeit in very irregular fashion.
By value investing standards the numbers look great for Berkshire. Despite the numbers adding up, I have traded up for 2 reasons. 1. They are sitting on cash for a pullback, but during the last few buying opportunities didn’t buy anything noteworthy. Just kept stacking cash while the value of that cash dwindled. 2. BRK is a cult of personality orbiting a 90 yo. One day Buffet is going to die and without the fundamentals changing at all, I expect an enormous red candle. If that candle appears, that is the day I am again a buyer.
Great review Sven. But I disagree that railroads are poor businesses. For Berkshire it is a place to deploy capital and get a regulated return. The high capital costs reduce any tax payable so for a company like Berkshire it is a perfect place for excess capital ( I.e they defer paying tax forever). I think it’s the same thing for BH Energy.
@@Value-Investing yesterday i found tomato skin in my diarrhea. Also, i found yellowish creamy substance at the end. It smells like a dead horse. Dr. Sven , i need your advice. Please provide your address. I will send you two gallons so you can analyze my diarrhea carefully and advise me on the treatment.
I’m a beginning investor and in the middle age, want to invest for my retirement. Should I wait for a better price to go into or should I invest an amount of money on a regular basis like every month?
Always grateful for your insights into stocks. How do you feel that BRK's biggest position is about 56% in Apple? Isn't it basically an Apple ETF? Or do you feel their portfolio is diverse enough to protect against any potential downsides with Apple?
🗽 The BRK stock developed very well... 👍👍 The 37.4 billion $ are the earnings form BRK operations, but w/o the earnings from investments in AAPL, etc.. Is this correct? .
Hey Sven! Hope you can clarify this question I have. Why do you include the stock portfolio when calculating PE? Shouldn't you just subtract the portfolio value before calculating the PE based on earnings from companies owned and cash. Cause in that case, PE will be around 14. I view the stock portfolio as its own entity. Thanks.
Warren doesn't care about stock prices going up or down, he cares about cash flows and that is why I also focus on those in a valuation. I will make another video soon discussing the hidden earnings from the stock portfolio to bring more light to this.
For an individual investor who cannot hide dividends from the taxman (eg inside a tax wrapper etc) Brk is almost the perfect stock. Your money is been managed by the greatest investor who ever lived. You only pay tax only when you sell. You have protection in the event the market falls onto its arse. A share price graph that is up and to the right. Buy BRK, sit on your backside and get rich - job done. You want to make generational wealth - job done. This is the ultimate fat pitch.
Hi Sven, love the videos I would really love to get your opinion on Warner brothers discovery, I'm not invested whatsoever but I have been looking into it recently and it looks like a good business going through a difficult time, but it could also be a value trap
I did buy on spinoff oversold and then sold when the stock got up because of other issues. I see those are materializing, here is I think the last video: ua-cam.com/video/hgjvQsEeiLM/v-deo.html
I say all the time, no amateur stock picker beats Berkshire. Not even sp 500. Most hedge funds will neither beat them 😀 Especially during high valued technology stocks
Hey Sven - a pitch for a video - why is Market Insurance business doing so badly vs why is Brk insurance business doing so well? Do you think there is connection between these two factors and WB's selling out of his Markel stock?
I'm really new in this, I really would like to know how price will be affected if Buffet dies, as we know he is 93 years old. Also I was thinking about Tesla stock how much will worth it without Musk. Also you never cover India market, did its smart to invest there for long term?
@@Value-Investing Nasdaq, Feb 18, 2024, says "Apple remains 45.5% of Berkshire's public equity portfolio, with Berkshire owning 5.9% of the company." Is this not correct?
It's sad that Warren is one of the only honest and transparent bussiness ceo's out there. When look at other companies they are constantly trying to add to their earnings. Warren is literally taking away.
Although I’ve been selling $brk.b it is still >30 % of my net worth. The performance of the energy business and future outlook struck me as ominous. “Toast” is probably an overstatement. Insurance had a great year but results can be lumpy. I wouldn’t buy the stock above $400/share. It’s not going to be a compounder going forward and management has made that very clear.
I think those are two different investments now. Apple in BRK is what Buffett paid for, while Apple on the market is at the current price, huge difference. Buffett is not going to sell Apple and that is it, wherever the stock price goes.
Are share of Berkshire's earnings of companies they own less than 20% (Apple, Coke, Amex and others from portfolio) included in that figure of 37B of operating earnings?
@@Value-Investing then if you would from market cap of 900B remove cash (165B) and portfolio value (355B), you are left with only 380B. Which means that PE for privately owned BH businesses is only about 12 (380B divided by operating earnings excluding dividends)? Ain't that a great value?
The guy is 93 yes this has nothing to do with the company but he is the most influential investor ever when he passes away berkshire will plummet for sure
@@Value-Investing I can afford more risk and look more at value investing myself (that's also why I am here), but for friends and family that are not into it I often suggest berkshire and so far so good. It yields much more than renting an apartment or something, and you don't have to do anything, just let it compound amd sell it when you want with a click, no fees, no agent, no contract, like one minute and the money are yours
You can’t simply buy it anytime, investing in a hands off estate biz is way safer than all time high BRK stock. But then Robinhood, Trading212 and other brokers need to make money too, so why not buy BRK at all time highs, yes
What about Arcadium Lithium? A very speculative stock, diluting shares and no dividends (when interest rates are 4-5%). Not Buffett-like! Studying Berkshire Hathaway teaches NOT to buy these companies. A company like Itochu was indeed a great move, but you never talked about it. Same with insurance stocks.
@6:05. BRK is better than S&P 500 because BRK is built to last?! 😕 S&P is built to last. Companies fall yet S&P keeps ticking. BKR is diversified? So is S&P. Charlie is gone and Buffett is next. While I'd never bet against Buffett, I'd go with S&P.
I trust your judgment Seth, you do the research but I can’t buy anything until this market gets dragged down from the ai pop. A 1 stock stock market makes no sense! It’s all Nvda! Just the mention of that Nvda gets its parts from SCMI shot the stock up 3000% which is now holding up the IWM.. Complete insanity that won’t end well. People not even buying Nvda.. it’s just call volume. Not going to end well..
Not a buy for me. Don't want to invest in a company that has 2 declining segments. Plus biggest position in investment portfolio is Apple which has the slowest growth of all megacaps. Scary and risky.
@@Value-Investing my hearing isn't great, but it is a two syllable word. Apologies I never hear the second syllable. Kudos on calling out the good value of BRK-B I keep nibbling and it keeps going up!!!!
Sounds like Buffet is tooting his own horn here. I think he's lost his touch (Paramount). I disagree that BRK is a better investment than the S&P index. BRK shares are up an annualized 12% in the last 10 years, slightly behind the 12.2% yearly total return, including dividends, for the index. Berkshire also is behind the S&P 500 over the past five years with a 13.4% annualized return, compared with 16.4% for the index. I agree with a lot of what he says (ignore the noise, be prepared). If Buffet doesn't want to buy his own stock back, I wouldn't either. Happy investing to everyone and good luck!
You´re comparing a value company to an extremely tech heavy (27%) SP500. You only include the last 10 years to fit your narrative. Look at the entire cycle and the numbers change. Value has underperformed in the last 10/15 years, but it does not mean the future will be the same. Risk is also important.
Okay let's cherry pick. In 2022 S&P was down 20%, BH was UP 3%. In bad economic times BH tends to perform better than the market. Last 15 years have been the era of cheap money, and people speculated to the tits. Era of cheap money is over. From 2023 annual report on share buyback: October Class A common stock 1,815 $ 522,756.10 Class B common stock - $ - - November Class A common stock 1,705 $ 536,048.49 Class B common stock 660,585 $ 347.16 December Class A common stock 103 $ 541,062.03 Class B common stock - $ - - They have lessened the share buybacks in the last couple months, because BH is trading at the highest end of their P/B value. Why would Buffett want to buyback shares at an expensive price?
I read ever word of Warrens letter, it gave me the impression that it was written by a man that was at the very apex of his profession.
Thats for posting Sven
:-)
Maybe also underscore biz in good hands incl future growth after his departure.
Nice video. But things to point out are: 1- the position in Apple is very large. And Apple is very expensive atm and buying BRK or S&P500 now seems silly. 2- the largest advantage, as a foreigner, of BRK vs S&P500 is that Berkshire doesn't pay dividends (which are taxed at 30% for foreigners) and the S&P500 pays dividends which must be reinvested after taxes.
Exactly, how can they recommend buying BRK when it is at all time highs? Jeez
@@m4758406 all in all, BRK is now very expensive, it doesn’t matter how well it did in the past, full stop.
Apple isn't a big factor on the operating earnings, it is on the hidden earnings, but we could say not even valued at the moment.
@@unboxing4319 Because Sven thinks it will continue to grow. What does it matter what the price is? Price is just a number - high or low. What matters is what the stock will do in the future. If you bought 10k of Tesla stock at all time highs 10 years ago you are now a millionaire.
Apple isn't that large . You need to add the stock portfolio of 370 billion, the operating side which is 534 billion , and add cash of 167 billion. The other aspect is the cost basis of apple is $35.00 a share too, So Berkshire total assets are now 1072. Apple is now about 165 billion out of the 1 trillion and 72 billion in change
This is either the Best video of 2024 or the Greatest video of 2024.
I was anticipating this video & you did not disappoint. Thank-you!
Glad you enjoyed it!
been with brk b since 2009, smiling now!
great!!!
I'm afraid that the right method to valuate that company is the Price/BookValue (it is not an oppinion, it is actually what Buffet says), and that ratio is above the average. So... it is not currently cheap.
there is some intangible book value not in that, but Buffett still focuses on it.
Great video as always. I bought Berkshire at $307 and i dont think i will sell in my lifetime.
As you mentioned Sven, Berkshire is a better buy than the S&P over the long term. Buffett has mentioned that the returns going forward will probably not be spectacular, given the size of the company, and the rich valuations of many stocks on the S&P. I however believe that the opportunities will present themselves, and Berkshire will be in a cash flush position to take advantage.
Thanks for sharing!
You got it at a reasonable price. Enjoy.
Good lessons. Someone in a discussion said to me, I am waiting untill Warren Buffet dies so the stock will drop in value. I laughed at him for saying such a silly thing. 1 Because it is already a great stock, don't wait for it and 2 "don't you think that what you are doing is trying to find a reason for buying something that is properly valued and others are thinking the same". He than laughed in my face for saying stupid things and I had to answer with "ignorance is bliss".
Thanks Charlie, Warren, Lynch, Kahnemann, Sven and so on and on... teaching lifelong lessons are more important.
Leadership transition has been carefully planned over many yrs. This letter was prob in part to assure shareholders esp BRKA. His successor has been in place for yrs. WB obv oversees but now mostly face of BRK. Mult division global corp.
with Warren at 93, things should be priced in.
@InvestingWhy does it matter as a long term or quality investor? Buffet has expressed his intentions for Berkshire Hathaway's future. Post-Buffett era may evolve over time and will ultimately be determined by the board of directors and the executives who succeed him. But its principles are too stay and no fear is needed to have already invested a part of your portfolio into this company. This is not FOMO and is not a gamble, the company is just great and is here to stay. Without Charlie and without Warren, they have done great in building it. The price to risk is priced in, his age is not a risk. I need counsiling from Benjamin Graham for this subject...
Thanks for the video Sven
My pleasure!
In your video in October 20th 2018 you said the same thing. Im glad i did not sell my S&P 500 to buy Berkshire. S&P 500 crushed Warren Buffet since then.
ok, but value investing is about risk and reward
Great commentary as always. Thank you.
Much appreciated
thank u to eat the work for us. u go deep in details, what 80% of the street, dont.
Thanks!
Great video! Thank you for sharing the lessons and warnings from Buffet's letter and discussing Berkshire. I'm holding and waiting for lower prices.
Thanks!
Another great video Sven. But there is a certainty that not even Mr. Buffet can overcome. He is 93 years old. What happens when he inevitably passes away? Will BRK management and investment policies change, what will be the impact on its investors who have engaged in a culkt of personality for so many years?
everybody knows that already, don't you think it is priced in?
I have never bought Berkshire because of Warren's age, the risk there for me is just that in 10-20 years the company will be not the same, because there will never be another Buffet.
ua-cam.com/video/kqVhcyzQ5U0/v-deo.html
Agreed, if Warren was in his 60s or younger BRK would be in my portfolio
You have a very shallow understanding of the business. The key is the float and keeping it "cost-free".
You don‘t need Warren to just sit there and watch the thing compound.
Many thinks the same bz many don't really understand WB.
I love BRK. The only thing that really worries me is Buffett's age. What happens to the stock if he passes away. He's 93 years old
He has a wonderful team that knows what they're doing. If Buffett is gone Berkshire is still on solid ground because it owns well diversified businesses that are not easily disruptable, thanks to Buffett.
time will tell, but the market knows Buffett is 93 :)
His son is CEO
@@timbradford8590 No his son is not CEO. Greg Abel has been named as Buffett's successor as CEO.
Being risk averse is very difficult when there's a lot of mania in the stock market (like now). But thats why their balance sheet is as good as it is. I liked his comments on Wall St. Made me think about the AI hype right now. It used to be blockchain. Now it's AI. Also really liked him talking about not liking his underwriters to be optimists. Hadnt thought of it like that!
Good point!
Thank you Sven, I agree 99%. 1% is that I don't see a S&P500 Etf as a riskier investment, it is just overpriced and there will be a lot of volatility, but it is well diversified and there are a lot of strong business there with solid earnings. BRK is better, but sooner or later will have a change at the CEO spot (I would like Warren there forever, but it's not possible), and we don't know how Hamburg and Co will operate; of course well, as BRK school is, but there will "never" be another Warren Buffett.
Thank you for great summary!
:-)
For me, the main issue with BRK is their limitation to buy only highly liquid big caps.
but he is inventing new things like Japan, but mostly he is waiting....
@@Value-Investing
Nikkei is growing. Even slow incr in rates will effect globe. Yuan and Yen are key for next 5-10 yrs.
Sven I like your videos. I bet you are being discriminated against because of your foreign accent. If you spoke English without an accent I bet you'd have a lot more subs. I'm not saying this as a criticism. I think you're being discriminated against. I am enjoying your content. Keep up the good work.
thanks for the kind words, but I am fine with those that are subbed:-)) Don't need those that don't like my accent :-))
@@Value-Investing Well said.
Better said, BRK WAS a buy in September 2022, March 2020 … now it’s just another expensive stock which exposes buyers to a tremendous risk, but anyway, brokers need to make money too
as discussed in the video, depends on the investor! It is clearly not for you!
Wait until better price. If looking for growth look elsewhere BRK more value. Obv know how to value a biz like WB. If not use ETFs.
@@jmc8076 yeah but there is no way BRK is buy like right now. Whoever buys a stock at all time highs is sabotaging theirselves
Thanks for the video Sven. Though I think you make on mistake. You divide the market cap by the operating earnings to come to a PE. In itself that make sense, but Berkshire also owns a sizable investment portfolio of around $350 billion. Dividends from that portfolio are included in the operating earnings, but value appreciation of the portfolio itself is not. Excluding dividend, that portfolio of stocks (including Apple etc.) should also yield at least a percent of 5 in the long run. That means another $15-20 billion of earnings that lowers the PE ratio of Berkshire significantly.
it is actually at best $8 billion in earnings: discussed here: ua-cam.com/video/qZNkO3NZ-CM/v-deo.html
please review HDB stock...indias largest bank..All time low PE ratio...strong earnings growth
thanks for suggesting!
A financial fortress. There is no better balance sheet in the SP500.
:-)
International markets will rise over next 5-10 yrs esp if USD devalues.
Great video. Thanks.
Thanks!
Thanks for the summary.
:-)
Sven you do a great job breaking it down. I’ve owned BRK since 1999 and was fortunate enough to go to Omaha in 2018 for the annual meeting. He kept pounding the table saying how cheap the stock was. I was lucky enough to be in a transition period in my life and bought several several shares on margin and just closed out my margin account with near after taxes and margin interest. His advice has changed my life and put my family on firm financial footing for years to come!!!
Thanks for the videos and news letter
I don't like using PE ratio and comparing BRK's operating earnings to market cap. You have to take into account the look-through earnings of the portfolio of businesses which adds about ~6% of earnings on $350bn = $21bn for a proper earnings number of 21+37=$59bn or a more reasonnable adjusted PE of 15.25. Warren keeps saying that these look-through earnings will certainly materialise over the years, albeit in very irregular fashion.
My number for those hidden earnings is closer to 8 billion, not 21 as mentioned in the video.
*Sven please do an investment analysis video on the big 5 Canadian Bank Stocks, under valued? would be interesting to hear your opinion.*
sorry, but I am not a specialist on banking :-( ua-cam.com/video/EMhoCEYSa6o/v-deo.html
Search Canadian investment blogs and big 5 banks. Learn how to evaluate a biz.
By value investing standards the numbers look great for Berkshire. Despite the numbers adding up, I have traded up for 2 reasons.
1. They are sitting on cash for a pullback, but during the last few buying opportunities didn’t buy anything noteworthy. Just kept stacking cash while the value of that cash dwindled.
2. BRK is a cult of personality orbiting a 90 yo. One day Buffet is going to die and without the fundamentals changing at all, I expect an enormous red candle. If that candle appears, that is the day I am again a buyer.
thanks for sharing!
Great review Sven. But I disagree that railroads are poor businesses. For Berkshire it is a place to deploy capital and get a regulated return. The high capital costs reduce any tax payable so for a company like Berkshire it is a perfect place for excess capital ( I.e they defer paying tax forever). I think it’s the same thing for BH Energy.
Buffett said it in the letter it is not a good business, but yes, there is a return and he bought it cheap.
One other qualification for being a BRK.A investor: either be rolling in cash or have access to fractional shares :) Thankfully there's BRK.B.
thanks for sharing!
Sven, great video! 2 stocks that may interest you: Allgeier (German small-cap it firm), Coupang (South Korean Amazon
Thanks for sharing!
My diarrhea smells really horrible. It has chunks of meaty objects. It is stinky. What should i do?
???
@@Value-Investing yesterday i found tomato skin in my diarrhea. Also, i found yellowish creamy substance at the end. It smells like a dead horse.
Dr. Sven , i need your advice. Please provide your address. I will send you two gallons so you can analyze my diarrhea carefully and advise me on the treatment.
I’m a beginning investor and in the middle age, want to invest for my retirement. Should I wait for a better price to go into or should I invest an amount of money on a regular basis like every month?
Always grateful for your insights into stocks. How do you feel that BRK's biggest position is about 56% in Apple? Isn't it basically an Apple ETF? Or do you feel their portfolio is diverse enough to protect against any potential downsides with Apple?
that is just the stock portfolio, most of BRK is not listed and not in the portfolio, don't mix that.
Thanks for clarifying Sven. @@Value-Investing
Thanks sven
:-)
🗽 The BRK stock developed very well... 👍👍
The 37.4 billion $ are the earnings form BRK operations, but w/o the earnings from investments in AAPL, etc.. Is this correct?
.
yes, just Apple's dividends are in the earnings, under insurance investment income.
Currently doing research into Cal-Main foods CALM , Looks like it could be attractive from a value perspective
thanks for sharing!
Hey Sven! Hope you can clarify this question I have. Why do you include the stock portfolio when calculating PE? Shouldn't you just subtract the portfolio value before calculating the PE based on earnings from companies owned and cash. Cause in that case, PE will be around 14. I view the stock portfolio as its own entity. Thanks.
Warren doesn't care about stock prices going up or down, he cares about cash flows and that is why I also focus on those in a valuation. I will make another video soon discussing the hidden earnings from the stock portfolio to bring more light to this.
but operativing earnings for 2023 are 47mrd according to cash flow statement
Will buy this stock when it crushes! I think there’s a war just around the corner…
thanks for sharing, hopefully no wars around the corner!
Legendary video... I agree but I'm compounding more in other stocks
thanks for sharing!!!!
Hi, Sven! What do you think about WBD now. I remember you analyzed it when the price was 14$ now it is 8,8$ Very interesting to know your opinion
video tomorrow! Looks interesting!
Steve,
Majority of brk investments is into Apple, which is not cheap either and at the same time lackluster growth forecast..
majority of the stock portoflio, there is much more to Berkshire!!!
Buying BRK is a wise investment decision considering the risk adjusted return.
I think it depends mostly on the investor, and whether BRK is a fit for the investor! But then, don't go complaining if it doesn't go up:-)))
For an individual investor who cannot hide dividends from the taxman (eg inside a tax wrapper etc) Brk is almost the perfect stock. Your money is been managed by the greatest investor who ever lived. You only pay tax only when you sell. You have protection in the event the market falls onto its arse. A share price graph that is up and to the right. Buy BRK, sit on your backside and get rich - job done. You want to make generational wealth - job done. This is the ultimate fat pitch.
That is why Warren doesn't pay dividends. But also doesn't do much bubybacks at these prices.
AAPL also stopped buying back shares in Q4 x23, is there a link with Berkshire?
stopped? I see 22 billion spend on repurchases in the last quarter cash flow statement?
Hi Sven, love the videos
I would really love to get your opinion on Warner brothers discovery, I'm not invested whatsoever but I have been looking into it recently and it looks like a good business going through a difficult time, but it could also be a value trap
I did buy on spinoff oversold and then sold when the stock got up because of other issues. I see those are materializing, here is I think the last video: ua-cam.com/video/hgjvQsEeiLM/v-deo.html
I say all the time, no amateur stock picker beats Berkshire. Not even sp 500. Most hedge funds will neither beat them 😀 Especially during high valued technology stocks
thanks for sharing!
Can you do a deep dive into REIT VICI?
thanks for suggesting!
Hey Sven - a pitch for a video - why is Market Insurance business doing so badly vs why is Brk insurance business doing so well? Do you think there is connection between these two factors and WB's selling out of his Markel stock?
I didn't analyze Markel since 2021, but there was something fishy, what it was I don't remember: ua-cam.com/video/9OnE_Je8QYY/v-deo.html
I'm really new in this, I really would like to know how price will be affected if Buffet dies, as we know he is 93 years old. Also I was thinking about Tesla stock how much will worth it without Musk. Also you never cover India market, did its smart to invest there for long term?
those are things you cannot know, thus we must focus on what we can know. On India, it is hard for foreigners to invest!
I believe it’s over weighted in apple . But at 98 no one is going to be around to say I told you so .
:-)
I live in a country where the intrest rate is 22% and inflation rate is 28% so what should be my investment strategy.
the world is big!
It appears as a huge problem that almost half of BRK is Apple. What about diversification?
it isn't, Apple pays about 800 million to BRK in dividends, the other 36.2 billion are berkshire's businesses
@@Value-Investing Nasdaq, Feb 18, 2024, says "Apple remains 45.5% of Berkshire's public equity portfolio, with Berkshire owning 5.9% of the company." Is this not correct?
It's sad that Warren is one of the only honest and transparent bussiness ceo's out there. When look at other companies they are constantly trying to add to their earnings. Warren is literally taking away.
:-)
I’ve been selling shares..railroad and energy business are toast.
ok, but that is just 20% of BRK earnings!
Although I’ve been selling $brk.b it is still >30 % of my net worth. The performance of the energy business and future outlook struck me as ominous. “Toast” is probably an overstatement. Insurance had a great year but results can be lumpy. I wouldn’t buy the stock above $400/share. It’s not going to be a compounder going forward and management has made that very clear.
really what will replace them ? lol
@@christophernash1846 T-bills until prices become more rational.
Not long ago I sold Apple @177 and purchase Berkshire at $350ish.
I was ridiculed. Now apparently everybody wants Berkshire at +400 🙄
I think those are two different investments now. Apple in BRK is what Buffett paid for, while Apple on the market is at the current price, huge difference. Buffett is not going to sell Apple and that is it, wherever the stock price goes.
@@Value-Investing Agree.
Forgot to set the Apple price point where I sold it. Now corrected.
Thanks for your insight.
less buybacks tell me that the bussines is a bit overvalued right now.
that is correct!
You boy Daniel Pronk likes hdb stock as well
sorry, I don't do banks.
Are share of Berkshire's earnings of companies they own less than 20% (Apple, Coke, Amex and others from portfolio) included in that figure of 37B of operating earnings?
just the dividends!
@@Value-Investing then if you would from market cap of 900B remove cash (165B) and portfolio value (355B), you are left with only 380B. Which means that PE for privately owned BH businesses is only about 12 (380B divided by operating earnings excluding dividends)? Ain't that a great value?
How will Berkshire perform when warren is no longer there? Who knows…
ua-cam.com/video/qZNkO3NZ-CM/v-deo.html
The guy is 93 yes this has nothing to do with the company but he is the most influential investor ever when he passes away berkshire will plummet for sure
some say they could start paying a dividend, so you never know...
So keep cash on the sidelines and be ready
That is what buffett is doing!
How will be brk after buffet 😇? Is this a point?
the businesses and the strategy are in place, likely the risk aversion too - ua-cam.com/video/kqVhcyzQ5U0/v-deo.html
but, only time will tell
How long will you live ? 200 years ?
???
W.B. desrves to last as long as Birkshire last, but nature is not as perfect as W.B.'s work Birkshire.
that is true!
Berkshire is the easiest investment in the world. You put the money, and you knlw they will grow them overtime not doing anything stupid
yes, if you are happy with the return...
@@Value-Investing I can afford more risk and look more at value investing myself (that's also why I am here), but for friends and family that are not into it I often suggest berkshire and so far so good. It yields much more than renting an apartment or something, and you don't have to do anything, just let it compound amd sell it when you want with a click, no fees, no agent, no contract, like one minute and the money are yours
You can’t simply buy it anytime, investing in a hands off estate biz is way safer than all time high BRK stock. But then Robinhood, Trading212 and other brokers need to make money too, so why not buy BRK at all time highs, yes
It is one of the right ways. But it is not that easy in "practice".
price is what you pay and value is what you get. BRK is the easiest investment if the valuation is right
What about Arcadium Lithium? A very speculative stock, diluting shares and no dividends (when interest rates are 4-5%). Not Buffett-like! Studying Berkshire Hathaway teaches NOT to buy these companies.
A company like Itochu was indeed a great move, but you never talked about it. Same with insurance stocks.
Well, I don't do insurance and I sure can't borrow YEN and then buy Japanese stocks - Japan and insurance are not for retail investors.
I guess every stock is a buy now to Sven.
guess what, whatever transaction is made, somebody is buying somebody is selling, thus for somebody everything is a buy:-))
@6:05. BRK is better than S&P 500 because BRK is built to last?! 😕 S&P is built to last. Companies fall yet S&P keeps ticking. BKR is diversified? So is S&P.
Charlie is gone and Buffett is next. While I'd never bet against Buffett, I'd go with S&P.
built to last in whatever environment, the S&P 500 is build to last in this environment, at least at these valuations.
I trust your judgment Seth, you do the research but I can’t buy anything until this market gets dragged down from the ai pop. A 1 stock stock market makes no sense! It’s all Nvda! Just the mention of that Nvda gets its parts from SCMI shot the stock up 3000% which is now holding up the IWM.. Complete insanity that won’t end well. People not even buying Nvda.. it’s just call volume. Not going to end well..
you never know, maybe this time it is different :-)))
@@Value-Investing 😁
Not a buy for me. Don't want to invest in a company that has 2 declining segments. Plus biggest position in investment portfolio is Apple which has the slowest growth of all megacaps. Scary and risky.
thanks for sharing!
Declining segments? Lol The cost basis of Apple is $ 35.00 a share too
What's a "fell investors"?????
fellow investors! :-)
@@Value-Investing my hearing isn't great, but it is a two syllable word. Apologies I never hear the second syllable.
Kudos on calling out the good value of BRK-B I keep nibbling and it keeps going up!!!!
Casino economy, casino investing. Those are alarming words to me.
it is what it is, I hope it ends up well
Berkshire is built to last but what will happen when Buffet dies.
Nobody lifes forever.
good point, but the 3 others are running things already, so we will see!
Steve jobs died and apple is still rolling.
Is there any way to quantify a "Warren premium" that might be in the stock price and might come out after he's gone?@@Value-Investing
Exactly my concern
Maybe someone better takes over...
seriously? You talked about how overpriced it was in the past, smh
As always, watch the vid before commenting:-)))
What happen to your lip Sven. Having too much fun ...... LOL
:-)))
Sounds like Buffet is tooting his own horn here. I think he's lost his touch (Paramount). I disagree that BRK is a better investment than the S&P index. BRK shares are up an annualized 12% in the last 10 years, slightly behind the 12.2% yearly total return, including dividends, for the index. Berkshire also is behind the S&P 500 over the past five years with a 13.4% annualized return, compared with 16.4% for the index. I agree with a lot of what he says (ignore the noise, be prepared). If Buffet doesn't want to buy his own stock back, I wouldn't either. Happy investing to everyone and good luck!
He had only like .5% of his total capital in Paramount. Bad example.
You´re comparing a value company to an extremely tech heavy (27%) SP500. You only include the last 10 years to fit your narrative. Look at the entire cycle and the numbers change. Value has underperformed in the last 10/15 years, but it does not mean the future will be the same. Risk is also important.
Okay let's cherry pick. In 2022 S&P was down 20%, BH was UP 3%.
In bad economic times BH tends to perform better than the market. Last 15 years have been the era of cheap money, and people speculated to the tits. Era of cheap money is over.
From 2023 annual report on share buyback:
October
Class A common stock 1,815 $ 522,756.10
Class B common stock - $ - -
November
Class A common stock 1,705 $ 536,048.49
Class B common stock 660,585 $ 347.16
December
Class A common stock 103 $ 541,062.03
Class B common stock - $ - -
They have lessened the share buybacks in the last couple months, because BH is trading at the highest end of their P/B value. Why would Buffett want to buyback shares at an expensive price?
@@barryallen6927 How is 10 year and 5 year average cherry picking, lol? Sorry your idol has lost his touch.
@@FlemetAeton You missed the rest of message. Sorry your idol has lost his touch. S&P outperforms the old man.
Why would anyone buy Berkshire if they mainly hold Apple and Coca Cola. Why not just buy Apple stock directly?
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