I have been following your content for years and have complimented you several times in the past but I really feel the need to do so again, Thank you very much for the content you make available to all of us
Thanks for the insight Sven. I've been on the fence with berkshire for a while but your clear reasoning behind the long term benefits made me decide to buy and include it in my portfolio
thanks for sharing, but keep in mind the risk of valuation, thus be ready to average down if possible, but for real BRK investors, that is the key benefit!
@Value-Investing very true, that's why I've been rebalancing my portfolio as well so I'm more heavy in cash too in order to be able to average down in case there is a bigger crash
Hello Swan, I’m very confused about Berkshire's report and would greatly appreciate a little help if possible. In the table you presented at 03:18, we see that the operating income for the first nine months of 2024 was about $32 billion (after excluding investment gains and losses). However, on page 5 of Berkshire's reports, in the income statement, we see approximately $86 billion in operating income. If we subtract the amount shown in the income statement, approximately $46 billion (Investment gains/losses), we get $40 billion and not $32 billion. Could you help clarify this discrepancy? Thank you!
Hi Sven Serious question : Don't you count 2 times the insurance investment income ? I mean you take 40 billions (included investment income) then you add +13 for T-bill income which are already in the 40 billions
Equity returns calculated for BRK, are in real terms, or nominal (with, we can say, 3% inflation for easy calculation)? S&P500, with 31 PE ratio, should offer 3%+2% US growth+3% inflation (circa) equals 8% nominal return (potential). Isn't it?
I wonder what happens with this stock after Buffet dies. They have someone to take Buffet place or how the company will transform after his death. For me this is the most important question.
Also, have you considered that Buffet is maybe too old for this and he doesn't want to involve in finding another businesses to invest and thats why is having such a big pile of cash? Maybe hes saying to himself" I'm to old for this sh.t, I will just buy some treasury"
Warren recently stopped buybacks. According his capital allocation philosophy, this is because he believes Berkshire is fairly/over priced. Plus, stock volatility is relatively low but most of the businesses owned by Berkshire are cyclical. I don't see any margin of safety here. No risk of losing money in the long term by holding Berkshire but there is the risk of low returns, even lower of Sven's forecast. I prefer risking waiting for a lower stock price (if ever will go lower).
Hello can you take a look at the Porsche Holding Stock? It is trading at PE ratio of 2,30x. Even though the automobile industry in Germany is very damaged I feel like the stock is just underpriced and the inner valvue of everything is much higher than the stock is valued. But I’m not as good in value investing as you so I would be very interested in what you think
He looked at VW / Stellantis. Porsche Holding is basically Volkswagen. Just some input, it doesn't matter what the PE says, if you're unable to sell (enough) cars for a profit in the future you ain't gonna make (much) money. The porsche situation is way too unclear to say it is undevalued. Too much competition for a new product (e-cars). The question is, are you willing to pay around 46 billon dollars for a company that is earning less each quarter, likely making €0 or a loss in Q4 with unpredictable future earnings? I'm not.
@ yeah thanks for responding I’m with you! I’m also not bullish on the car industry in Germany. I’m just curious because at some point don’t know how low a stock can go. The market cap of the Porsche holding is way lower than the stocks they hold on Volkswagen. Plus they have holdings on other company’s. I mean obviously they heavily depend on the performance of Volkswagen and there is a holding fee included but at that point I feel like just the market cap is to low for that stock. That’s why I’m wondering. Greetings from Germany
Car companies are hard to value. Ferrari can always raise prices. Porsche can always raise prices for their collector cars, but mass market cars like Cayenne not so much
@@AntonGeorgescu Sunrise shares started trading and the starting market cap was subtracted from Liberty's, so nothing changed at time 0. From here, Sunrise under $50 represents a near 10% dividend from a Swiss telco with stable cashflows... it won't stay like this. The top Swiss telco trades at an under 4% div yield. If Sunrise's yield approaches that after the dust settles, its market cap could approach the pre-spin Liberty market cap. And then you still have the remaining Liberty subsidiaries trading almost for free. So no, nothing vanished, but if you have to ask such question, I'd honestly focus on something else.
If Buffet is not buying back despite the huge cash pile, does that imply we should not be buying? Or, does it imply he values the option value of the cash highly and thus we should buy? What is more plausible? Thanks
@ I guess you would be out the management fee. Yes it could but it is a compounding machine so I would think that it do at least 5-8% a year. Over the past five years BRK has doubled with a compound annual return of 14-15%. I personally would not buy it because many of those daily long/shorts ETFs mostly serve the fund marketers.
You lost me at "Berkshire is always a BUY" :) I'm stunned how value investors quickly forget about the key principles when it comes to everything related to Mr. Buffet.
Time is the friend of the good company. I could care less if BRK is under or overvalued. Buy the shares, sit on your arse and get rich. In Buffett we trust.
Berkshire stock is compounding around 10% over the last 25 years, and likely at a lower rate over the next decade, you aren’t creating real wealth at that low rate.
Wrong, burkshire doesn't think it's UNDERVALUED. But if you follow buffet, buying a great company at a fair price is a buy. And this is a great company at a fair price.
You know Sven.. sometimes IDK. I am watching your videos the other and nothing seems like really good. I have these periods in market when I would rather sell and sit on it.
🗽 Correct Sven, always consider for BRK in addition to operating earnings the hidden earnings from the investment-portfolio (minus dividends)... 👍 Thx for analysing! .
I have been following your content for years and have complimented you several times in the past but I really feel the need to do so again,
Thank you very much for the content you make available to all of us
Thanks!!!
great video was looking exactly for that!!
Glad I could help!
If Berkshire isn't buying their own shares at these prices, why should anyone else?
Good point, the stock is not cheap and quite risky comparing to AMZN or GOOGL.
well, it seems some are as the stock just keeps going up!
Thanks for the insight Sven. I've been on the fence with berkshire for a while but your clear reasoning behind the long term benefits made me decide to buy and include it in my portfolio
thanks for sharing, but keep in mind the risk of valuation, thus be ready to average down if possible, but for real BRK investors, that is the key benefit!
@Value-Investing very true, that's why I've been rebalancing my portfolio as well so I'm more heavy in cash too in order to be able to average down in case there is a bigger crash
Hello Swan,
I’m very confused about Berkshire's report and would greatly appreciate a little help if possible.
In the table you presented at 03:18, we see that the operating income for the first nine months of 2024 was about $32 billion (after excluding investment gains and losses).
However, on page 5 of Berkshire's reports, in the income statement, we see approximately $86 billion in operating income. If we subtract the amount shown in the income statement, approximately $46 billion (Investment gains/losses), we get $40 billion and not $32 billion.
Could you help clarify this discrepancy? Thank you!
For some reason the algorithm on my TH-cam feed for this channel has fallen out of favour a bit. But I'm glad to have caught this video 😊
great to hear!
Hi Sven
Serious question :
Don't you count 2 times the insurance investment income ?
I mean you take 40 billions (included investment income) then you add +13 for T-bill income which are already in the 40 billions
i have deducted that, we are at 40 now, plus 30 from new investments is 70, minus 10 from current income :-)
@@Value-Investing Aaah you're right, awesome !
Great, but no dividends no party (I know, I know dividends are not tax efficient!).
:-)))
opinion on Grenke AG stock?
no opinion, if you elaborate more in a new comment, maybe I'll have :-)
Thanks for the video! I own BRK.B
thanks for sharing, now go for BRK.A :-)
Equity returns calculated for BRK, are in real terms, or nominal (with, we can say, 3% inflation for easy calculation)? S&P500, with 31 PE ratio, should offer 3%+2% US growth+3% inflation (circa) equals 8% nominal return (potential). Isn't it?
we cannot know what inflation will be, assume 8% return on equity, that is 3 to 4%, plus inflation
I wonder what happens with this stock after Buffet dies. They have someone to take Buffet place or how the company will transform after his death. For me this is the most important question.
Also, have you considered that Buffet is maybe too old for this and he doesn't want to involve in finding another businesses to invest and thats why is having such a big pile of cash? Maybe hes saying to himself" I'm to old for this sh.t, I will just buy some treasury"
as discussed in the vid, BRK will continue to be BRK
SP500 average return is 10% so 7.2% is lower than expected SP500...
10% is the average yes, but not from this level forward :-)
I don't much stuff other than Berkshire. If you are patient, it is a bargain at any price.
Hi Sven , I follow your chanel can you look and do a deep dive on Centene (Ticker : CNC).
thanks for suggesting!
@ also do you think BGS is undervalued at the current price.
Warren recently stopped buybacks.
According his capital allocation philosophy, this is because he believes Berkshire is fairly/over priced.
Plus, stock volatility is relatively low but most of the businesses owned by Berkshire are cyclical.
I don't see any margin of safety here. No risk of losing money in the long term by holding Berkshire but there is the risk of low returns, even lower of Sven's forecast.
I prefer risking waiting for a lower stock price (if ever will go lower).
thanks for sharing, of course!
@@Value-Investing I appreciate you, Sven!
is sven still publicly running his portfolio, or made up a new one with the better performance to show you))))
thanks for commenting, hope you have a great day!
What is the actual PE ratio right now then?
around 25
Hello can you take a look at the Porsche Holding Stock? It is trading at PE ratio of 2,30x. Even though the automobile industry in Germany is very damaged I feel like the stock is just underpriced and the inner valvue of everything is much higher than the stock is valued. But I’m not as good in value investing as you so I would be very interested in what you think
He looked at VW / Stellantis. Porsche Holding is basically Volkswagen. Just some input, it doesn't matter what the PE says, if you're unable to sell (enough) cars for a profit in the future you ain't gonna make (much) money. The porsche situation is way too unclear to say it is undevalued. Too much competition for a new product (e-cars). The question is, are you willing to pay around 46 billon dollars for a company that is earning less each quarter, likely making €0 or a loss in Q4 with unpredictable future earnings? I'm not.
@ yeah thanks for responding I’m with you! I’m also not bullish on the car industry in Germany. I’m just curious because at some point don’t know how low a stock can go. The market cap of the Porsche holding is way lower than the stocks they hold on Volkswagen. Plus they have holdings on other company’s. I mean obviously they heavily depend on the performance of Volkswagen and there is a holding fee included but at that point I feel like just the market cap is to low for that stock. That’s why I’m wondering. Greetings from Germany
Car companies are hard to value. Ferrari can always raise prices. Porsche can always raise prices for their collector cars, but mass market cars like Cayenne not so much
thanks for suggesting!
Any updates on Liberty 42% drop? I can’t find any news
spin-off
Sunrise spin
@@Value-Investing so that value just vanished?
@@AntonGeorgescu Sunrise shares started trading and the starting market cap was subtracted from Liberty's, so nothing changed at time 0.
From here, Sunrise under $50 represents a near 10% dividend from a Swiss telco with stable cashflows... it won't stay like this. The top Swiss telco trades at an under 4% div yield. If Sunrise's yield approaches that after the dust settles, its market cap could approach the pre-spin Liberty market cap.
And then you still have the remaining Liberty subsidiaries trading almost for free.
So no, nothing vanished, but if you have to ask such question, I'd honestly focus on something else.
If Buffet is not buying back despite the huge cash pile, does that imply we should not be buying? Or, does it imply he values the option value of the cash highly and thus we should buy? What is more plausible? Thanks
Buffet always seems to build a big pile of cash before a crash. But he is not timing the market. It could be seen as waiting for valuation to drop.
Best comment. Thanks
cash 5%, plus the potential for future acquisitions - he likely values it more than BRK now!
ADM compliance Chief to resign, Q3 results to be delayed
thanks for sharing!
what is difference between brk.b and brk.a. which to buy on fidelity for my taxed account?
Brk.a has voting rights. So you should buy brk.a but you won’t have enough money to buy 1 share. So brk.b it is for us…
Buy brk.b, that is the cheaper one that most ppl can afford. There is no difference, just brk.a represents are large stake in the company
@@smoothjorn thanks
Thanks
always buy BRK.A, buy a few and forget about your money :-)))
Berkshire’s 2 top operating managers have less than 1/3 of their net worth in Berkshire stock, not exactly confidence inspiring.
I mean that can be a lot or too little depending on who you ask. I think incentives still very much in line with 1/3 of net worth.
thanks for sharing!
What do you think of the 2x long brk etf ?
Ticker symbol, please?
Hot trash, buffett would hate it
2BRE.L
likely a daily thing, what if BRK doesn't do anything for a decade?
@ I guess you would be out the management fee. Yes it could but it is a compounding machine so I would think that it do at least 5-8% a year.
Over the past five years BRK has doubled with a compound annual return of 14-15%.
I personally would not buy it because many of those daily long/shorts ETFs mostly serve the fund marketers.
You lost me at "Berkshire is always a BUY" :) I'm stunned how value investors quickly forget about the key principles when it comes to everything related to Mr. Buffet.
I up-voted you b/c on its face that statement makes little sense. However.... BRK does continue to move forward like a bulldozer on low gear.
The best time to buy BRK is when the stock dips and ppl are pessimistic.
And I agree no stock is always a buy unless ur return expectations are very low
If you stop watching at "Berkshire is always a buy" , maybe you shouldn't comment the video..😅
everything is a buy for somebody, BRK now is a Better buy than 98% of other things out there!
Time is the friend of the good company. I could care less if BRK is under or overvalued. Buy the shares, sit on your arse and get rich. In Buffett we trust.
8% a year gross return on investment, it will take a lifetime to get rich
it is not about getting rich, but about being well-off
Berkshire stock is compounding around 10% over the last 25 years, and likely at a lower rate over the next decade, you aren’t creating real wealth at that low rate.
I don't buy bonds, All in 8% will be perfectly fine for me in BRK.
Buffett thinks brk is not a buy right now sven. Just follow the old man on his own stock.
Wrong, burkshire doesn't think it's UNDERVALUED. But if you follow buffet, buying a great company at a fair price is a buy. And this is a great company at a fair price.
yes, not for Buffett, but for the other 99% of people BRK is always a buy!
You know Sven.. sometimes IDK. I am watching your videos the other and nothing seems like really good. I have these periods in market when I would rather sell and sit on it.
the summary, for the better: th-cam.com/video/oNaTfeshx1Y/w-d-xo.html
No bad, but for this performance is it not better to buy sp 500 or even better Nasdaq ?
But BRK will have less stock fluctuation risk in a recession!
.
@jonnes__4657 yes, but at the end of the day we are looking at pure performance (most of us). Nasdaq index fund will be better (at lesser risk).
@@gamingoninteluhdgraphics6296nasdaq are very likely more risky than brk..
Do it tell us your performance in 10 years!
I personally buy BRK when it dips I.e. during covid
🗽 Correct Sven, always consider for BRK in addition to operating earnings the hidden earnings from the investment-portfolio (minus dividends)... 👍
Thx for analysing!
.
:-)
Best channel on Investing! Thank you so much for the information
THANK YOU!
Long BRK, are you able to provide an overview of PayPal and/or Google to contrast? Thanks in advance!
thanks for suggesting!
would love to see an in depth update on paypal
thanks for suggesting!
Honestly i did not know they (we) also own Brooks... BRK still suprises me even though i am shareholder since Dec 2018...
Same. Usual buyer of them and boy when I saw the graph...I couldn't believe it😂
:-)
BERKSHIRE IS CASH PLEASE DO NOT CALL THIS VALUE INVESTING, IT IS A LIE.
thanks for sharing
They’ve already lost out on billions from selling apple…
Time will tell
that is the way investing works when you sell, you cannot know!
@@Value-Investing so why sell…
Over 20 billion in income tax and many tens of billions in foregone gains.
Brk.b is always a buy & hold for me.
If u got in at a low cost basis u would perform a lot better just holding
:-)