A shareholder attempts to calculate Berkshire Hathaway's intrinsic value
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- Опубликовано: 14 окт 2024
- Warren Buffett and Charlie Munger respond to a shareholder's question at the 1999 Berkshire Hathaway annual meeting.
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You deserve to be thanked for each and every video.. you make it simple for us to look for what Warren says about a specific object whenever we want!
I do wonder what kind of method all the Tesla fans use to calculate the intrinsic value of that company.
😅
maybe they look at the 700 million dollars that elon got last year and think that he must be some kind of wonder CEO!
@@laspro508 Haha probably.
wanna short tesla w me?
@@detnemt9571 I don't do shorts, only long positions.
Thank you for posting these wonderful videos. Eternally grateful for your generosity
So has anyone calculated its instrinsic value...what is it? So your work :-)
Could someone please explain a little about the method the nice gentleman explained here
animevideos he used the look-through earnings of BRK that year, projected it with 15% of growth rate for the first next 10 years, then 10% for 10 years after that, and lastly assigned a terminal value of 10x (10% discount rate). Then he discounted all of them back using 10% discount rate to get the PV of BRK.
@@giangduong13 hey isn't it the discounted cash flow method by which you get npv or net present value by discounting and estimating the cost of capital to get to the present value of that asset
Giang Duong that’s very helpful now what do you mean by he discounted it back by 10% to get the pv which I’m assuming pv stands for present value
@@animevideos7278 Yes PV is present value.
What does the discount rate mean? Is it the percentage you take out of the final value. Let's say the answer is ten, then you'd take 10% = 1 out of 10, right?
I also wanted to ask is it wrong to write the DCF on paper since small stuff could change the outcome of the number ?
Yes. It is a dangerous method if used inappropriately. That is why, be conservative with your growth estimates, and a little aggressive with the discount rate you use.
Some have even suggested using the average earnings of the past few years just so you don't use extreme oddities of the recent past. I would take the average of the past 3 years, estimate growth at 15% for 15 years, and discount it back at 30-year government bond rate + expected annual inflation rate (2 to 3%).
Would graham formula work to estimate the intrinsic value if used being conservative on the growth estimates?
It can but you would have to modify the original formula in accordance with today's data and also use margin on safety on top the ben graham formula, that too minimum of 25%
@@surenderyadav7738 how do you calculate intrinsic value?
@@surenderyadav7738 can you try and do that here
Which year was this question asked?
1999
Hey people,
Can someone please explain the shareholders attempt to calculating berkshires intrinsic value, as he would explain it to a 5 year old