Sunday, July 30, 2017

Berkshire Hathaway Update

Berkshire Hathaway (BRK-B) is growing value slowly but steadily. Possible take over of Texas Utility Oncor is a positive but there is $100B of cash which needs to be deployed. This large cash position has been a drag on BRK-B cash earnings growth rate. The rail freight recovery and the manufacturing upswing in the US economy are a tailwind for earnings growth over the next 12 months. BRK-B is trading for $174 which is reasonable and target 2018 end fair value in excess of $200 is feasible.

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