Thursday, April 06, 2006

Berkshire Hathaway Inc; BRK.A April 6, 2006

Price per share: $90,000
Market Cap (intraday): 138.60B
Trailing P/E (ttm, intraday): 16.25
Forward P/E (fye 31-Dec-07) 1: 18.70
PEG Ratio (5 yr expected): N/A
Price/Sales (ttm): 1.70
Price/Book (mrq): 1.52
Enterprise Value/Revenue (ttm)3: 1.34
Enterprise Value/EBITDA (ttm)3: 7.877

Profit Margin (ttm): 10.44%
Operating Margin (ttm): 15.20%

Return on Assets (ttm): 4.18%
Return on Equity (ttm): 9.62%


Today is an important day for me. It’s my Birthday. I’m 26 years old today. Therefore, I’m going to share something special with all investors.

I am going to discuss one of my top holdings, which I truly believe is undervalued and will provide good returns over the long-term.

I am sure you have read a lot about Berkshire Hathaway and its legendary CEO, Warren Buffett. There are so many great things to talk about this company, and its subsidiaries, as well as its CEO and Vice Chairman.

Whitney Tilson, a hedge fund manager, has discussed in great details why Berkshire is undervalued. Mohnish Pabrai has done a good article on ValueInvestor Club about Berkshire too. I personally couldn’t do much better analysis than that anymore.

Please read: My favourite Stock Idea: Berkshire Hathaway

Please read: Berkshire:Your Biggest Holding? March 6, 2006

Please read: Shareholders’ Letter

I will discuss in my next posting what I like about Berkshire.

At current price of $90,000 per share, a lot of superinvestors believe that Berkshire is worth at least $120,000 per share, which means there is a 33% upside to it before considering growth. Happy investing.

All the best,
Dah Hui Lau (David)

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