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Author: raytoei Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3794  
Subject: You hear that "Beep Beep" sound ? Date: 11/18/2008 3:28 AM
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...it is the sound of the truck backing up.

Berkshire Hathaway, Buffett's company (Brk.b or Brk.a) is currently selling at
historical low levels.

Way back in 1999/2000, at the height of the internet boom, no one wanted to buy Berkshire Hathaway because it was considered old world, and Brk was selling at very low levels. How low ? Well, share price by itself is not a good yardstick, it has to be measured in relation to another metric, the common ones are Price to Earnings, Price to sales or Price to Book. For many value investors, Price to Earnings & Price to Book are favorites, but for financial companies, Book value is a more conservative measurement. Way back in 1999, Brk was selling at a P/Book of 1.5.

The P/Book value has not seen that levels since this year, where the current book value is 1.2. Imagine, you can buy Berkshire Hathway for near book value and you get the world's best stock picker for free.

cheers!

raytoei
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Author: kahunacfa Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3781 of 3794
Subject: Re: You hear that "Beep Beep" sound ? Date: 12/28/2012 6:09 AM
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Warren E. Buffett IS NOT the World's best stock picker. That title is more aptly given to Thomas Perkins, Founding General Partner of Kleiner Perkins, Caufield & Beyers.

A few examples of companies founder by Kleiner Perkins: Federal Express, Genetech, Spectra-Physics, Tandem Computers, more recently Google(GOOG) and dozens of other companies, many still private.

Kahuna, CFA
Venture Capital
Founding General
Partner 2012 - 2019

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