Berkshire Hathaway Highest ever Book Value! November 9, 2009Posted by shaferfinancial in Finance.
Tags: Berkshire Hathaway, my portfolio
Berkshire Hathaway reported late Friday its 3rd quarter results. As expected its book value went above $80K to $81,247 per A share. It is now trading at 1.26 times book value. Its book value is now at an all time high. Pretty impressive performance in the middle of a recession!
However, there is still much more upside potential with its operating profits not fully recovered from the recession. Many of its businesses are still suffering from the effects of the recession with reduced revenue and profits.
Total earnings did triple from the third quarter of 2008.
Proving its critics wrong, is one thing, but driving its book value to an all time high in a recession is simply an amazing performance. The future is really bright as we see slow improvement in operating businesses this quarter over the first two of the year. Tremendous value is being created by the deals Buffett made in the last 2 years and the purchase of BNI announced last week should continually improve both cash flows and profits for many years to come.
I will continue to own and add to my shares of Berkshire going forward.
By the way, there is tremendous upward potential over the short-term for Berkshire, IMHO, and folks who have been sitting on the sideline should now strongly consider purchasing BRK.
Next post will go over the other two stocks I own, HCN and MMP.