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Warren Buffett Buys Banks After a Banking Crisis
I can see Apple back at 15 times earnings. And so you drop it from 25 to 15, you're 40% down on the multiple offset by whatever the growth is in the business. Coke's not going to grow as it had. You essentially are going to get a mid single digit, maybe a six or seven percent out of it. The positives will be covered, but you'll see some, I think you've got ongoing bank troubles.
Stig has invited legend investor Chris Bloomstran from Semper Augustus to teach us how to value Berkshire Hathaway on today's show. Semper Augustus has an outstanding track record with a CAGR of 11.5% since his fund's inception on 2/28/1999, compared to 6.9% for the S&P500.
There is no one in the space we respect as much as Chris Bloomstran when valuing the intrinsic value of Berkshire Hathaway.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
10:21 - The intrinsic value of Berkshire Hathaway and what the P/B of Berkshire Hathaway tells us & what it doesn’t tell us.
16:34 - How to think about depreciation and maintenance CAPEX
19:02 - Why the insurance business is worth approximately as much as the energy and railroad businesses combined
35:17 - How to think about Berkshire Hathaway’s bigger equity positions
1:13:49 - Where you can use Berkshire Hathaway to park cash?
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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