We Study Billionaires - The Investor’s Podcast Network TIP346: Masterclass in Valuation w/ Chris Bloomstran
39 snips
Apr 25, 2021 
In this insightful discussion, Chris Bloomstran, an acclaimed investor from Semper Augustus, shares his valuation expertise. He breaks down four methods for estimating Berkshire Hathaway's intrinsic value, revealing misconceptions about its cash reserves. Chris delves into strategic capital allocation versus regular dividends, emphasizing their importance for shareholder value. The conversation also covers the complexities of valuation, opportunity costs in investments, and the future of Berkshire post-succession, providing listeners with invaluable insights into equity valuation techniques.
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Per-Share Focus
- Per-share metrics are crucial when evaluating businesses, especially with share repurchases.
- Focus on per-share intrinsic value growth and normalized profitability.
Profit Normalization
- Normalizing profits involves analyzing write-offs, write-downs, and actuarial assumptions of companies.
- Consider factors like organic growth, acquisitions, and capital reinvestment.
Berkshire's Cash Position
- Berkshire Hathaway's cash position isn't as excessive as it seems, considering working capital needs and insurance reserves.
- Bloomstran estimates only about $70 billion is truly deployable.
