We Study Billionaires - The Investor’s Podcast Network TIP548: Berkshire Hathaway Masterclass 2023 w/ Chris Bloomstran
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Apr 30, 2023 
Chris Bloomstran, a legendary investor from Semper Augustus with an impressive 11.5% CAGR, shares his profound insights on valuing Berkshire Hathaway. He delves into the intrinsic value of the conglomerate, discussing the misleading aspects of the price-to-book ratio. Bloomstran highlights the significant worth of Berkshire's insurance business compared to its energy and rail sectors. He also explains how maintenance capital expenditures relate to depreciation and where investors can safely park cash within Berkshire's diverse portfolio.
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First Berkshire Meeting
- Chris Bloomstran recalls his first Berkshire Hathaway meeting in 2000.
- He describes a chaotic rush for seats when doors opened early due to rain.
Trust but Verify
- Berkshire Hathaway's trustworthiness is verifiable through its history and accounting.
- Investors can rely on their consistent conservatism and capital allocation.
Book Value vs. Intrinsic Value
- Berkshire's declining equity portfolio in 2022 lowered its book value but increased intrinsic value.
- This highlights the limitations of using price-to-book for valuation.