Berkshire Hathaway is Undervalued

Berkshire Hathaway’s stake in Apple ($94 billion), plus its cash as of March 31 ($137 billion), plus its stock portfolio less Apple as of March 31 ($113 billion) equal $344 billion or 77% of its market capitalization of $444 billion. Therefore, all of its businesses are being valued at $100 billion.

Since Berkshire’s stock portfolio has very likely appreciated since March 31, which was close to the market bottom, then all of its businesses are being valued at less than $100 billion.  Berkshire’s 60+ businesses include BNSF railroad, Berkshire Hathaway Energy, its insurance operations (Geico, etc.), and its manufacturing companies.