Berkshire Hathaway Inc (BRK.B)

[bar1080]

"That's like a mutual fund trading at a 25% premium to its net asset value, which is unheard of"

Actually many CEF's trade at fat premiums to Net Asset Value, and some like ADX, which I own, trade at discounts. I made a fast profit years ago in a Closed End Fund that traded about 30% under NAV, and soon liquidated.

Buffett has advised his investors that BRK is a good buy when it trades at less than a 20% premium.

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What do you get for that 25% BRK premium? First, you get Warren and Charlie almost FOR FREE. Second, you get the BRK mystique. They can buy any stock and it will rise because the "boys" or their hand picked employees selected it. Third, you get all that free BRK leverage from their insurance operations. Fourth, you get BRK's real magic... their deal making power. When a troubled firm or one that needs to do a hot acquisition needs a few billion bucks on a few days notice and in total secrecy, Warren's the guy to call. But that service doesn't come cheap!

Total secrecy? BRK's main office has about 25 employees. Compare that with the leaks that usually happen at larger lenders with their loan committees, and revolving door of workers.