Stig has invited legend investor Chris Bloomstran from Semper Augustus to teach us how to value Berkshire Hathaway on today's show. Semper Augustus has an outstanding track record with a CAGR of 11.5% since his fund's inception on 2/28/1999, compared to 6.9% for the S&P500. 

There is no one in the space we respect as much as Chris Bloomstran when valuing the intrinsic value of Berkshire Hathaway. 

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

10:21 - The intrinsic value of Berkshire Hathaway and what the P/B of Berkshire Hathaway tells us & what it doesn’t tell us. 

16:34 - How to think about depreciation and maintenance CAPEX

19:02 - Why the insurance business is worth approximately as much as the energy and railroad businesses combined

35:17 - How to think about Berkshire Hathaway’s bigger equity positions

1:13:49 - Where you can use Berkshire Hathaway to park cash? 

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

• Listen to Stig’s masterclass with Chris Bloomstran on valuing Berkshire Hathaway or watch the video. 
• Tune in to Stig’s masterclass with Chris Bloomstran on equity valuations or watch the video.
• Chris Bloomstran’s website.
• Read Chris Bloomstran’s letters to his clients. 
• Buffett resource on CNBC.

NEW TO THE SHOW?

• Check out our We Study Billionaires Starter Packs.
• Browse through all our episodes (complete with transcripts) here.
• Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
• Enjoy exclusive perks from our favorite Apps and Services.
• Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
• Learn how to better start, manage, and grow your business with the best business podcasts. 

P.S The Investor’s Podcast Network is excited to launch a subreddit devoted to our fans in discussing financial markets, stock picks, questions for our hosts, and much more! Join our subreddit r/TheInvestorsPodcast today!

SPONSORS

• If you’re aware you need to improve your bitcoin security but have been putting it off, Unchained Capital's Concierge Onboarding is a simple way to get started—sooner rather than later. Book your onboarding today and at checkout, get $50 off with the promo code FUNDAMENTALS.
• Have peace of mind knowing River holds Bitcoin in multi-sig cold storage with 100% full reserves.
• Easily diversify beyond stocks and bonds, and build wealth through streamlined CRE investing with EquityMultiple.
• Make connections, gain knowledge, and uplift your governance CV by becoming a member of the AICD today.
• What does happen when money and big feelings mix? Tune in to find out on the new podcast, Open Money, presented by Servus Credit Union.
• Capitalize on the rapidly growing cybersecurity market today with Atakama.
• Have Commonwealth Private's Private Bankers take the time to understand your goals and tailor solutions that create less for you to do and more for you to enjoy.
• If you're into marketing podcasts that walk through how successful entrepreneurs, politicians, and influencers have convinced and persuaded people, then you should give Nudge, hosted by Phil Agnew, a listen!
• Get yourself a Blockstream Jade -- An all-in-one, bitcoin-only hardware wallet that makes protecting your bitcoin so easy. Use the coupon code Fundamentals to get 10% off.
• Apply for the Employee Retention Credit easily, no matter how busy you are, with Innovation Refunds.
• Hire expert marketers, on-demand, with MarketerHire. Listeners get a $1,000 credit for first-time customers when you use code WSB.
• Discover the leading community for engaged investors, and the best source of investment analysis and opinion with Seeking Alpha. Listeners get a special deal: Alpha Picks for $99 + 1 month of FREE Seeking Alpha Premium!
• Support our free podcast by supporting our sponsors.

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.