Berkshire Hathaway is the story



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Warren Buffett, President and CEO of Berkshire Hathaway. & Nbsp; (AP Photo / Nati Harnik) Photo credit: Associated Press

Questions, questions. Their stock portfolio shows a concentration with capital "C". Why so many Apple? Why add to bank stocks? When is enough, enough? Has the 2008-09 financial crisis not nearly destroyed all major banks, with the exception of JPMorgan Chase?

Admittedly, Bank of America's panicked leadership needed a capital injection from Berkshire that required mandates that yielded billions of gains. Warren Buffett does not have enough credit for his merchant banker's trick. Even Goldman Sachs came looking for an infusion in 2009.

A cardinal precept of money management is never about you digging a hole that you can not easily break and simply sweep a few details of the dirt. It's a big world, so you're starting to analyze other strong stocks and new market sectors. Buffett missed Internet and e-commerce stocks that exploded on $ 500- $ 700 billion properties.

Maybe he was too disciplined in matters of evaluation. Certainly, his opposition to all Murphymen using non-GAAP earnings in their financial reporting as compared to GAAP accounting is legitimate, but nobody cares – for now. The variance of earnings for Facebook and Alphabet, year after year, is up to 20% per year.

The measure I am looking for is operational cash flow, because it is the way to develop your footprint. Spending 15% of its turnover on research and development is also not a small percentage. Apple's R & D spend is well below that of Facebook and Alphabet.

The reason why there are 400 dollar stocks like Boeing and 1,000 dollar sheets of paper like Amazon and Alphabet is Buffett's comment that dividing a stock into $ 50 shares in order to attracting greater interest from buyers is a crazy idea. Grandmothers no longer buy Ma Bell for their darlings. But, a lot of Amazon for half a dozen grandchildren is beyond their means. My grandmother should come back on AT & T, give up 6.7%, but everyone will not care.

Years ago, Warren employed ghost writers for his annual report. Maybe, he's browning his image too compulsively. I'm fed up with the volumetric imposition of the report. But I am impatient with any financial report of more than 40 pages. This goes for 10Ks, 10Qs and proxy reports where company lawyers intentionally lengthen everything, hoping that shareholders will get tired and throw it away.

The length of a proxy statement varies directly with the amount of rewards generated by the management itself. Buffett would not think of abusing his shareholders. I would like to see him use color charts and graphs to emphasize his beliefs. Why not emphasize that the price / profit ratio of the market is compared to high prices? Interest rates and inflation are at their lowest if the country's financial history is repeated.

The Berkshire shareholding is perhaps too complacent and can not or can not handle statistical exposures. The Buffett portfolio's concentration style has surely spawned hundreds of market operators managing investment partnerships, but with indifferent and unsustainable results.

The other side of the coin is that most banks and major wealth management offices are investing in circular sectors for their clients. They are over-diversified around the world, including gold, emerging-market debt, and US Treasuries. Portions of their funds are delegated to external fund managers, resulting in additional fees for clients.

In comparison, Buffett's portfolio is too simplistic. It stinks apple pie and mom (no pun intended). Decades ago, Coca-Cola, American Express and Wells Fargo, as well as newspapers like the Washington Post carried the weight. But that is largely history. Jeff Bezos owns the Washington Post now and per capita consumption of cola-based drinks has peaked. Wells Fargo has turned out to be full of pettifoggery with an unsuspecting customer base.

I have 10% of my capital invested in Citigroup and another 10% in Boeing. Why own airlines, Warren? Levi Strauss thrived by selling jeans to gold prospectors. In the $ 172.7 billion Berkshire equity portfolio, financial services accounted for almost half of the value of assets at the end of 2018. Wells Fargo and Bank of America held positions of $ 20 billion. Coca-Cola, a $ 18.9 billion position with a cost of $ 1.3 billion is not going anywhere. Similarly, American Express costs $ 14.4 billion and $ 1.3 billion.

Potential tax debts can reach $ 14 billion. There is no reason, beyond the non-performance, for Buffett to end his low-cost properties. Apple, a $ 40 billion end-of-year addition costs $ 36 billion, should be seen as an aggressive move to revive a burdensome portfolio, but is probably not enough. Buffett's discipline does not lend itself to the purchase of high P / E stocks. You rarely find tech houses here. The average price / earnings ratio of his portfolio, I had placed several points below the market valuation of 17 times the profits.

What is Berkshire Hathaway worth as an asset-based stock? Buffett is 88, but leave that for now. I wish him good luck and pesetas for years to come. The portfolio, net of taxes payable, is $ 158 billion. Do not forget that the book value of the company is $ 212.5 billion, but you must place a multiplier on its operating income entities. They include Geico, the north of Santa Fe in Burlington, utilities and energy properties.

I am ready to multiply by 15 the operating companies in Berkshire after reviewing the valuations of railroads, high quality industrialists and underwriters. There are more farmable railway properties such as the Canadian Pacific Railway and Union Pacific. Geico is a good operator, but subject to a cyclical vulnerability in underwriting pricing and flat interest rates that have a significant impact on the investment income account of all players in the industry.

Berkshire's total operating profit is approximately $ 25 billion. Use a multiplier of 15 and you will reach $ 375 billion. There is $ 112 billion in cash and $ 20 billion in fixed income. Then, $ 97 billion borrowing to deduct, but according to my figures, the value of adjusted assets rises to $ 543 billion as an operating entity.

Over the past five years, Berkshire outperformed the S & P 500 Index by 14%, but slightly underperformed the previous year, as did the state's financial sector. Pre-tax revenues for manufacturing and service companies increased by more than 10%, but this appears to be a degreased activity. I may be too generous in adding capitalized value to these entities, but perhaps not because you have to take into account the control of premiums for sale.

I think Warren's dream is to see Berkshire flourish as part of Americana – powerful operating and investment management companies on the margins of society. Holding companies normally sell for less than the value of their assets. It can happen when Warren is gone. Currently, the market capitalization of Berkshire, about $ 500 billion, roughly reflects the adjusted amount I put in – $ 543 billion.

I consider Berkshire today as a profitable investment. The story is not in his investment portfolio that contains a scary beta risk, even for me. Berkshire has become a monument.

To learn more about how the most influential billionaire investors are investing their money, click here.

Disclosure: Sosnoff and / or its managed accounts own: Goldman Sachs, Facebook, Alphabet, Amazon, AT & T, Wells Fargo, Citigroup and Boeing.

[email protected]

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Berkshire Hathaway President and CEO Warren Buffett. (AP Photo / Nati Harnik) Photo credit: Associated Press

Questions, questions. Their stock portfolio shows a concentration with capital "C". Why so many Apple? Why add to bank stocks? When is enough, enough? Has the 2008-09 financial crisis not nearly destroyed all major banks, with the exception of JPMorgan Chase?

Certainly, the panicked leadership of Bank of America needed a capital injection of Berkshire demanding mandates that earned him billions of gains. Warren Buffett does not have enough credit for his merchant banker's trick. Even Goldman Sachs came looking for an infusion in 2009.

A cardinal precept of money management is never about you digging a hole that you can not easily break and simply sweep a few details of the dirt. It's a big world, so you're starting to analyze other strong stocks and new market sectors. Buffett missed Internet and e-commerce stocks that exploded on $ 500- $ 700 billion properties.

Maybe he was too disciplined in matters of evaluation. Certainly, his opposition to all Murphymen using non-GAAP profits in their financial reporting compared to GAAP accounting is legitimate, but nobody cares – for now. The variance of earnings for Facebook and Alphabet, year after year, is up to 20% per year.

The measure I am looking for is operational cash flow, because it is the way to develop your footprint. Spending 15% of its R & D income is also not a negligible percentage. Apple's R & D spend is well below that of Facebook and Alphabet.

The reason why there are 400 dollar stocks like Boeing and 1,000 dollar sheets of paper like Amazon and Alphabet is Buffett's comment that dividing a stock into $ 50 shares in order to attracting greater interest from buyers is a crazy idea. Grandmothers no longer buy Ma Bell for their darlings. But, a lot of Amazon for half a dozen grandchildren is beyond their means. The grandmother is expected to return to AT & T with a 6.7% return, but everyone is not sure.

Years ago, Warren employed ghost writers for his annual report. Maybe, he's browning his image too compulsively. I'm fed up with the volumetric imposition of the report. But I am impatient with any financial report of more than 40 pages. This goes for 10Ks, 10Qs and proxy reports where company lawyers intentionally lengthen everything, hoping that shareholders will get tired and throw it away.

The length of a proxy statement varies directly with the amount of rewards generated by the management itself. Buffett would not think of abusing his shareholders. I would like to see him use color charts and graphs to emphasize his beliefs. Why not emphasize that the price / profit ratio of the market is compared to high prices? Interest rates and inflation are at their lowest if the country's financial history is repeated.

The Berkshire shareholding is perhaps too complacent and can not or can not handle statistical exposures. The Buffett portfolio's concentration style has surely spawned hundreds of market operators managing investment partnerships, but with indifferent and unsustainable results.

The other side of the coin is that most banks and major wealth management offices are investing in circular sectors for their clients. They are over-diversified around the world, including gold, emerging-market debt, and US Treasuries. Portions of their funds are delegated to external fund managers, resulting in additional fees for clients.

In comparison, Buffett's portfolio is too simplistic. It stinks apple pie and mom (no pun intended). Decades ago, Coca-Cola, American Express and Wells Fargo, as well as newspapers like the Washington Post carried the weight. But that is largely history. Jeff Bezos owns the Washington Post now and per capita consumption of cola-based drinks has peaked. Wells Fargo has turned out to be full of pettifoggery with an unsuspecting customer base.

I have 10% of my capital invested in Citigroup and another 10% in Boeing. Why own airlines, Warren? Levi Strauss thrived by selling jeans to gold prospectors. In the $ 172.7 billion Berkshire equity portfolio, financial services accounted for almost half of the value of assets at the end of 2018. Wells Fargo and Bank of America held positions of $ 20 billion. Coca-Cola, a $ 18.9 billion position with a cost of $ 1.3 billion is not going anywhere. Similarly, American Express costs $ 14.4 billion and $ 1.3 billion.

Potential tax debts can reach $ 14 billion. There is no reason, beyond the non-performance, for Buffett to end his low-cost properties. Apple, a $ 40 billion end-of-year addition costs $ 36 billion, should be seen as an aggressive move to revive a burdensome portfolio, but is probably not enough. Buffett's discipline does not lend itself to the purchase of high P / E stocks. You rarely find tech houses here. The average price / earnings ratio of his portfolio, I had placed several points below the market valuation of 17 times the profits.

What is Berkshire Hathaway worth as an asset-based stock? Buffett is 88, but leave that for now. I wish him good luck and pesetas for years to come. The portfolio, net of taxes payable, is $ 158 billion. Do not forget that the book value of the company is $ 212.5 billion, but you must place a multiplier on its operating income entities. They include Geico, the north of Santa Fe in Burlington, utilities and energy properties.

I am ready to multiply by 15 the operating companies in Berkshire after reviewing the valuations of railroads, high quality industrialists and underwriters. There are more farmable railway properties such as the Canadian Pacific Railway and Union Pacific. Geico is a good operator, but subject to a cyclical vulnerability in underwriting pricing and flat interest rates that have a significant impact on the investment income account of all players in the industry.

Berkshire's total operating profit is approximately $ 25 billion. Use a multiplier of 15 and you will reach $ 375 billion. There is $ 112 billion in cash and $ 20 billion in fixed income. Then, $ 97 billion borrowing to deduct, but according to my figures, the value of adjusted assets rises to $ 543 billion as an operating entity.

Over five years, Berkshire outperformed the S & P 500 Index by 14%, but slightly underperformed the previous year, as did the financial sector in the S & P 500 Index. Equity stands at 349%. billion USD, compared to 500 billion USD in market value. Pre-tax revenues for manufacturing and service companies increased by more than 10%, but this appears to be a degreased activity. I may be too generous in adding capitalized value to these entities, but that may not be because you need to consider the control of sales premiums.

I think Warren's dream is to see Berkshire flourish as part of Americana – powerful operating and investment management companies on the margins of society. Holding companies normally sell for less than the value of their assets. It can happen when Warren is gone. Currently, the market capitalization of Berkshire, about $ 500 billion, roughly reflects the adjusted amount I put in – $ 543 billion.

I consider Berkshire today as a profitable investment. The story is not in his investment portfolio that contains a scary beta risk, even for me. Berkshire has become a monument.

To learn more about how the most influential billionaire investors are investing their money, click here.

Disclosure: Sosnoff and / or its managed accounts owns: Goldman Sachs, Facebook, Alphabet, Amazon, AT & T, Wells Fargo Preferred Shares, Citigroup and Boeing.

[email protected]

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