Happy 91st Birthday @WarrenBuffet!
Truly the goat of investing! ??
Here are my key takeaways:
1. Extremely hard to assess the companys valuation. However, based on conservative FCF method, its currently fairly valued at USD 280-300.
2. Berkshire has lagged the S&P500 for the past 2 years. However, I personally believe they are still able to beat the the market on the long run with the compounding effect.
3. S&P500 is up against Berkshire due to its tech eexposure. However, with the overvaluation at S&P500 right now, Berkshire would be a better buy.
4. Biden's $1 Trillion infrastructure bill will further boost Berkshire's earnings in the coming years.
5. Once Warren Buffet/Charlie Munger dies, the companys share price will take a small dip due to bad market sentiment. However, I believe Greg Abel and the entire manegement team (which are handpicked by Buffet himself) will manage the company well. Keep in mind, there are many investors out there who have constantly beat the market. The team after buffet will and I quote the goat himself "keep the culture".
6. Company is poised to be a trillion dollar valuation company soon. Buybacks have been aggresive, high amount of free cash flow, and balance sheet is extremely healthy.
Recommendation: BUY
Comments by me:
●Will be buying some BRK.B today, since its my birthday and Warren Buffet Birthday as well. (We share the same birthday).
●Berkshire > S&P500 for now due to market valuation.
All the above are my opinions. Let me know yours!
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