Berkshire Hathaway Inc (BRK.B)

[bar1080]

Forbes: A sensible criticism of BRK at this level.

"For me, there’s a glaring omission in Berkshire Hathaway’s quarterly report. Nowhere does Warren Buffett talk about his $220 billion portfolio of stocks. The 10-Q is a dense, 55-page slog, proliferating in tables and stats.

"More than you can shake a stick, there’s detailed breakdowns of all parts of its business. But, aside from listing portfolio holdings, no commentary on concentration in banks and the outsized position in Apple.

"Shareholders of Berkshire Hathaway pay a 25% premium over its $400 billion asset value. This is probably the most dangerous metric in my valuation analysis because it could erode next couple of years. I’m not forecasting recession around the corner so bank stocks can hang in, at least, market performers."

"Personally, I’m not thrilled by the industrials held or in the insurance sector where there’s plenty of capacity and flattish investment income. This won’t reverse itself so fast. Holding 40% of assets in bank stocks is too extreme for me. I prefer Facebook, Alibaba, Alphabet and Microsoft to Apple but that’s a quirk and debatable."

https://www.forbes.com/sites/martinsosnoff/2019/11/11/does-berkshire-hathaway-shed-its-book-value-premium/