Berkshire Hathaway

A company managed by Warren Buffett and Charlie Munger.

Their annual report (written by Buffett) is an excellent learning material.

Annual report

2022

• Operating earnings: ~$31B -> 10cap figure is$310B
• insurance float: $164B
• total assets: $948B
• shareholder’s equity: $480B

2021

It’s an “infrastructure company” with $158B infrastructure assets.

They paid $3.3B in tax (vs.$402B is the total corporate income tax in the US), which amounts to $9M per day.

Four giants: - insurance business with $147B float - [[Apple Inc.]] that amounts to$161B in current market value. The “share” of earnings is $5.6B. That means the intrinsic value may be$60B-$120B - BNSF: earnings of$6B -> $60B+ value. - BHE:$4B, but with lots of reinvestment in renewerbles. $50B+.

They may sum to 300~400B?

Stocks without Apple: 190B current market value -> Intrinsic value of 100B-150B?

Cash and bonds: 144B.

All (conservatively) sum up to 550B+ and adding infrastructure asset 158B equals to 710B.