The awaited Berkshire Hathaway Annual letter came in last night. It was a little pale by most standards but the performance of the company continues to be very strong .
The company generated about $20B of profits for the entire year of 2013. The book value at the end of 2013 was about $135K per share... On the two occasions that we have purchased the stock the book value was $100K and $115K in 2011 and 2012 respectively. The juggernaut continues to roll on.
It is clear from the letter that both Warren and Charlie are looking for more acquisitions in the future. There is also an indication that the 2014 might be a better year than 2013. Insurance business and regulated utilities are firing on all cylinders and all the acquisitions are performing fine.
Based on last Friday's closing of $172K per share of Berkshire -- it still looks like a steal. Warren would want to buy Berkshire at 1.2 times book. The stock is trading at 1.27 times book.
It will interesting to watch the performance on Monday morning. If the price hangs around where it is now (which we highly doubt) -- we might make some additional purchases to supplement our already large positions.
Disclosure -- Berkshire is the second largest holding in our portfolio.
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