What's the IV for BRK.B?

$Berkshire Hathaway(BRK.B)$

Background

° In a previous post, I estimated the IV (Intrinsic Value) of BRK.B to be 1.3 * NBV after comparing past Shares BuyBack data.

° However, from their latest Q221 Financial Report, the highest Average Price Paid for their Shares BuyBack in Q121 was $286.10 (for May).

What Does that Mean?

° For Q121, using my computed NAV = $199.34 & my previously estimated 1.3 * NBV, I'd projected Max Shares Buyback Price = $259.14.

° With this latest data of $286.10, this means the formula could be around 1.435 * NBV instead !!

What's Next ?

° From the latest Q221 Financial Report, I have computed NBV = $211.22.

° At 1.3 * NBV, my estimated Shares Buyback Max Limit = $274.58.

° At 1.435 * NBV, my estimated Shares Buyback Max Limit = $303.10!!

CAUTION!!

° DYODD (Do Your Own Due Diligence) - Don't blindly trust what you read, please do check the figures & reasonings. Then form your own conclusions & action plan, if any.

° There's NO GUARANTEE that BRK will do any Shares Buyback. It depends on their Free Cash Positions & Opportunity Cost ie If they find a better alternative eg acquisition target which offers better returns, they'll likely opt for that.

° I'm using Quarter End NBV as that's what is available to us. However, BRK could be using Month End NBV (Only available to themselves) to compute Share BuyBack Prices for every new month & with rising NBV (due to improving economy & Investment Share Prices), the factor (1.435) could be actually lower.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

KinKat
2021-11-05
KinKat
Q3 Estimate
Monching
2021-09-07
Monching
Good to know
LLYeoh
2021-09-06
LLYeoh
Like
Miinhui
2021-09-05
Miinhui
Great
Allyvic
2021-09-05
Allyvic
Wow
Sherlock67
2021-09-04
Sherlock67
good job.

Leave a comment

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Then form your own conclusions &amp; action plan, if any.</p> <p>° There's NO GUARANTEE that BRK will do any Shares Buyback. It depends on their Free Cash Positions &amp; Opportunity Cost ie If they find a better alternative eg acquisition target which offers better returns, they'll likely opt for that.</p> <p>° I'm using Quarter End NBV as that's what is available to us. However, BRK could be using Month End NBV (Only available to themselves) to compute Share BuyBack Prices for every new month &amp; with rising NBV (due to improving economy &amp; Investment Share Prices), the factor (1.435) could be actually lower.</p></body></html>","htmlText":"<html><head></head><body><p><a target=\"_blank\" href=\"https://laohu8.com/S/BRK.B\">$Berkshire Hathaway(BRK.B)$</a></p> <h3>Background</h3> <p>° In a previous post, I estimated the IV (Intrinsic Value) of BRK.B to be 1.3 * NBV after comparing past Shares BuyBack data.</p> <p>° However, from their latest Q221 Financial Report, the highest Average Price Paid for their Shares BuyBack in Q121 was $286.10 (for May).</p> <p><img referrerpolicy=\"no-referrer\" src=\"https://static.tigerbbs.com/7be2db3d434523bdb137bbb55695a5aa\" tg-width=\"966\" tg-height=\"814\"></p> <h3>What Does that Mean?</h3> <p>° For Q121, using my computed NAV = $199.34 &amp; my previously estimated 1.3 * NBV, I'd projected Max Shares Buyback Price = $259.14.</p> <p>° With this latest data of $286.10, this means the formula could be around 1.435 * NBV instead !!</p> <p><img referrerpolicy=\"no-referrer\" src=\"https://static.tigerbbs.com/01faec22da60783d8ffc3e9b26e0b45c\" tg-width=\"966\" tg-height=\"680\"></p> <h3>What's Next ?</h3> <p>° From the latest Q221 Financial Report, I have computed NBV = $211.22.</p> <p>° At 1.3 * NBV, my estimated Shares Buyback Max Limit = $274.58.</p> <p>° At 1.435 * NBV, my estimated Shares Buyback Max Limit = $303.10!!</p> <p><br></p> <h3>CAUTION!!</h3> <p>° DYODD (Do Your Own Due Diligence) - Don't blindly trust what you read, please do check the figures &amp; reasonings. Then form your own conclusions &amp; action plan, if any.</p> <p>° There's NO GUARANTEE that BRK will do any Shares Buyback. It depends on their Free Cash Positions &amp; Opportunity Cost ie If they find a better alternative eg acquisition target which offers better returns, they'll likely opt for that.</p> <p>° I'm using Quarter End NBV as that's what is available to us. However, BRK could be using Month End NBV (Only available to themselves) to compute Share BuyBack Prices for every new month &amp; with rising NBV (due to improving economy &amp; Investment Share Prices), the factor (1.435) could be actually lower.</p></body></html>","text":"$Berkshire Hathaway(BRK.B)$ Background ° In a previous post, I estimated the IV (Intrinsic Value) of BRK.B to be 1.3 * NBV after comparing past Shares BuyBack data. ° However, from their latest Q221 Financial Report, the highest Average Price Paid for their Shares BuyBack in Q121 was $286.10 (for May). What Does that Mean? ° For Q121, using my computed NAV = $199.34 & my previously estimated 1.3 * NBV, I'd projected Max Shares Buyback Price = $259.14. ° With this latest data of $286.10, this means the formula could be around 1.435 * NBV instead !! What's Next ? ° From the latest Q221 Financial Report, I have computed NBV = $211.22. ° At 1.3 * NBV, my estimated Shares Buyback Max Limit = $274.58. ° At 1.435 * NBV, my estimated Shares Buyback Max Limit = $303.10!! CAUTION!! ° DYODD (Do Your Own Due Diligence) - Don't blindly trust what you read, please do check the figures & reasonings. Then form your own conclusions & action plan, if any. ° There's NO GUARANTEE that BRK will do any Shares Buyback. It depends on their Free Cash Positions & Opportunity Cost ie If they find a better alternative eg acquisition target which offers better returns, they'll likely opt for that. ° I'm using Quarter End NBV as that's what is available to us. However, BRK could be using Month End NBV (Only available to themselves) to compute Share BuyBack Prices for every new month & with rising NBV (due to improving economy & Investment Share Prices), the factor (1.435) could be actually 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