Monopoly Management and Shareholder Responsibility

This chapter explores the challenges faced by publicly traded monopolies in balancing short-term profits with long-term sustainability, particularly within the regulatory framework. It also examines Berkshire Hathaway's capital management strategies and investments in renewable energy, highlighting their impact on shareholder equity.

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Episode notes

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.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Listen to Stig’s masterclass with Chris Bloomstran on valuing Berkshire Hathaway or watch the video.
Tune in to Stig’s masterclass with Chris Bloomstran on equity valuations or watch the video.
Chris Bloomstran’s website.
Read Chris Bloomstran’s letters to his clients.
Buffett resource on CNBC.

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