How to Value Berkshire Hathaway 2024 w/ Chris Bloomstran (TIP625)

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 compounded annual growth rate of 11.5% on equities since his fund's inception on 2/28/1999, compared to 7.6% for the S&P500.

IN THIS EPISODE YOU’LL LEARN:
00:00:00 - Intro
00:01:22 - The impact of holding cash on your portfolio returns.
00:27:07 - How to understand the five different components that makeup stock market returns
00:36:57 - How to estimate the expected return of being invested in the S&P500
00:46:19 - What the intrinsic value of Berkshire Hathaway is
00:52:44 - How Berkshire Hathaway has allocated capital since 2018   

▶️ RELATED EPISODES:

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ABOUT OUR SHOW 🎙 
On We Study Billionaires, we interview and study famous financial billionaires including Warren Buffett, Bill Gates, and Ray Dalio. We teach you what we learn and how you can apply their investment strategies in the stock market.

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❗ DISCLAIMER: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting.

[WeStudyBillionaires]

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[HaruSakamoto]

Wow this is one of THE MOST INSIGHTFUL videos of all time from Investors Podcast. It amazes me how much reading and detail of bottom-up analysis he has done. I'm definitely starting to read his letters

[johnmcquaid]

Amazing interview .. and explained in terms that I can understand.
Thank-you; truly inspiring! 🇨🇦

[MonteCristoKaramazov]

These conversations are going to make me a super investor

[fplbrunoo]

Here's my hack: BRK discloses its average share buy back price in its quarterly reports. Buffet writes that he only buys back when it's below intrinsic value under conservative assumptions. So I only buy when Mr Buffet buys. Last time he bought back at $357. Loaded up. Look at me now

[kangleli]

Can someone elaborate how Chris get 50 billion from 1trillion? And why divide by 1.45 to get A share intrinsic value? I am not following that.

[KamilMauel]

A worse year Apple has the more Berkshire outperforms its largest holding. +8pp in 2018 and ~+30pp in 2022 and YTD. Since the start of the relationship in 2016 the iPhone maker has been red in 3 years, the Buffet company in none. The incredible cushion.

[MNSTgrowth]

1 trillion, 50 billion. Divide by 1.45 and then 1500. Still don’t know exactly what the fair value price is for A shares and B shares. 😅 Anyone know?

[brianbirnbaum]

The idea that you need to work 24/7 is complete nonsense, especially when it comes to investing. The reasons are too many to list, but plenty of the greatest investors in the world hold an entirely antithetical perspective.

I’m not saying that your way is wrong. But I’m saying your absolutism is just a poor guide for insecurity that if you’re not working you’re falling behind. The author of WHAT I LEARNED ABOUT INVESTING FROM DARWIN fully realizes that at least 90% of financial input is entertainment.