COSTCO WHOLESALE CORP (COST) 60.72 red arrow -$0.55 (-0.90%) 10:21AM (15 mins delay)


Analyzing the Oracle: Berkshire Hathaway Holdings and Analysis

Sep 29, 2009 - 10:41 AM EDT

Value Expectations submits:

The Oracle of Omaha Warren Buffett is generally viewed as the most respected and successful investor in history, and many of our value-oriented readers follow the movements and purchases of Buffett rather closely and for good reason. Berkshire Hathaway (BRK.A), a conglomerate holding company, which Buffett built from a textile company into a major corporation, has averaged a 20.3% compounded annual gain in per-share book value from 1965-2008. There is no doubt about the success Buffett has achieved over the years, and there has even been a recent study done that shows an investor could have earned over 14% returns a year had they purchased each Buffett stock, a month after his investment company disclosed ownership.

We thought it would be an interesting story to show how Buffett’s holdings would rank according to The Applied Finance Group’s (AFG’s) valuation model and Economic Margin Methodology. The companies we believe look the most attractive and that investors should pay the most attention to when searching for long investment opportunities are the companies that have both an attractive default AFG valuation and are expected to improve their Economic Margins at a greater rate than their sector peers.


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Source: Seeking Alpha (Sep 29, 2009 - 10:41 AM EDT)



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