Berkshire Hathaway 4Q2019 Results Overview Shows that Per BRK-B share an owner indirectly owns $100 per share in Stock Equity Holdings (AAPL, AXP, BAC, KO etc, excludes KHC which is $10B), $60 per share in Cash Equivalents. Considering operating Earnings per share in child companies and removing adjusted liabilities for debt and insurance float the fair value of BRK-B is in a range of $250-$300 in our opinion. BRK Insurance Float increases to $129B.
A lot depends on how the $130+B excess cash can be invested and Buffett has done a poor job of this in last 4 years. Outlook in this regard is cloudy and this has slowed down the growth of BRK value. BRK only bought back 1% of shares in 2019 ($5B worth) which does not move the needle. BRK shares were up 11% in 2019 and S&P was up 32% including dividends.
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