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Berkshire Hathaway’s 1st Quarter May 7, 2013

Posted by shaferfinancial in Finance.
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One should never take too much stock into a single quarters results, whether they are good or bad. I caution you on this up front.

Berkshire Hathaway had a blow out quarter. It is really hitting on all cylinders at this point. Only real issue is that Buffett still hasn’t found that big deal for all his cash.

Net earnings came in at $5.017B a 49% increase from the 1st quarter last year. Net cash flow from operations was $6.055B an increase of 30% from the last year. Berkshire now has almost $50B in cash waiting for that correct deal. What this means is what I have been saying about Berkshire for a couple of years now is that the company is a cash flowing machine. Net earnings per share was $2,977 a rise of 51%.

Shareholder equity went up to $198B an increase of 6% for the quarter. A $12B dollar investment in Heinz will close in 2013 as soon as regulatory approval is received.

The price of the stock has risen to $165,000 [$110 for Bs]. This is a 23% rise year to date and a 33% rise over the last year. I no longer consider it severely undervalued, but now just undervalued. Still is a buy in my book with room to run, especially if it continues its earnings power for the next couple quarters.

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