To The Moon

Berkshire Hathaway, the conglomerate headed by Warren Buffet and Charlie Munger released their Q4 and Annual Results on 25th Febuary. 

Berkshire Hathaway is an extremely diversified company. They own $334 Billion in stocks. Some examples are they own 5.8% of $Apple(AAPL)$ , 11.9% of Bank of America, 20.4% of American Express, 9.2% of $Coca-Cola(KO)$   and so many more. Besides, their own operating businesses consist of Insurance, Utilities, Railroad and Manufacturing. Overall, Berkshire is way more diversified that any index fund and is a stock to weather any form of economic situation. 

Berkshire Hathaway has interest in every part of the US economy, and is used as a gouge on how the economy is doing as whole. US has been raising interest rates, and the economy is currently in a recession, however Berkshire remains strong and undefeated. 

Here are some of the happenings:

●Berkshire Cash Hoard is currently at $128.59 Billion, up from $109 B in Q3

●Berkshire has 333.92 Billion in stock investment. Both cash and stocks represent 68% of Berkshires Market Cap at $672 billion. 

●Operating Earnings of Berkshire rose to all time high of $30.78 Billion, up 12% from 2021.

●Free cash Flow for 2022 is $21.76 Billion. 

●Berkshire bought back $8 Billion worth of Shares, representing 1.2% of their outstanding shares. Warren also specifically mentioned that people who say "all repurchases are harmful to shareholders or the country or particularly benefit the CEO" they are economically illiterate or a silver-tongued demagogue. 

●Warren specifically mentioned that Berkshire will continue to hold a boatload of cash, US treasury Bills and alot of businesses. 

The 2022 result is extremely impressive seeing how the US is in a recession but Berkshire continues to do really well. Based on their operating earnings and current balance sheet cash and investment amount, we are able to calculate a new intrinsic value. Based on a conversative 2% growth rate for the next 10 years, a discount rate of 10% and a terminal multiple of 15, Berkshire is worth $904.51 billion. With the current trading price of  $672 Billion, Berkshire Hathaway is currently trading at a a discount of 34.6%. Berkshire is extremely undervalued currently and has a Buy consensus from many analyst. 

With their diversified stock portfolio across all sector, top performance earnings, and their constant reinvestment, I believe everyone should have this company as the core of their portfolio. Berkshire has outperform since 1965 with a CAGR rate of 19.8% vs S&P500's 9.9%, and I believe it will continously outperform throughout the next decade. 

Are you guys buying $Berkshire Hathaway(BRK.A)$  $Berkshire Hathaway(BRK.B)$  ? Let me know!