A shareholder attempts to calculate Berkshire Hathaway's intrinsic value

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A shareholder attempts to calculate Berkshire Hathaway's intrinsic value

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Күн бұрын

Warren Buffett and Charlie Munger respond to a shareholder's question at the 1999 Berkshire Hathaway annual meeting.
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Пікірлер: 54

@TheIcelandicInvestor 4 жыл бұрын

I do wonder what kind of method all the Tesla fans use to calculate the intrinsic value of that company.

@Leon-ur5uk 4 жыл бұрын

😅

@laspro508 4 жыл бұрын

maybe they look at the 700 million dollars that elon got last year and think that he must be some kind of wonder CEO!

@TheIcelandicInvestor 4 жыл бұрын

@@laspro508 Haha probably.

@detnemt9571 3 жыл бұрын

wanna short tesla w me?

@TheIcelandicInvestor 3 жыл бұрын

@@detnemt9571 I don't do shorts, only long positions.

@laspro508 4 жыл бұрын

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!

@GeorgetheArchitect 3 жыл бұрын

Thank you for posting these wonderful videos. Eternally grateful for your generosity

@hugosalinasaliaga5266 4 жыл бұрын

So has anyone calculated its instrinsic value...what is it? So your work :-)

@animevideos7278 5 жыл бұрын

Could someone please explain a little about the method the nice gentleman explained here

@giangduong13 5 жыл бұрын

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.

@lakshmimondal3808 5 жыл бұрын

@@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

@animevideos7278 5 жыл бұрын

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

@knpstrr 5 жыл бұрын

@@animevideos7278 Yes PV is present value.

@excitedaboutlearning1639 4 жыл бұрын

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?

@animevideos7278 5 жыл бұрын

I also wanted to ask is it wrong to write the DCF on paper since small stuff could change the outcome of the number ?

@thumbliner 5 жыл бұрын

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%).

@diseasefire 4 жыл бұрын

Would graham formula work to estimate the intrinsic value if used being conservative on the growth estimates?

@surenderyadav7738 4 жыл бұрын

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%

@candyfloss184 3 жыл бұрын

@@surenderyadav7738 how do you calculate intrinsic value?

@uztrtrwhu3678 Жыл бұрын

@@surenderyadav7738 can you try and do that here

@GeorgetheArchitect 3 жыл бұрын

Which year was this question asked?

@apothe6 3 жыл бұрын

1999