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Stocks B / Berkshire Hathaway


Subject:  Re: Semper Augustus Letter Date:  2/22/2020  7:38 PM
Author:  BreckHutHigh Number:  247779 of 256719

“ I found this Semper letter on BRK far more interesting and informative than BRK's AR.
And, it includes Semper's estimate of 4Q2019 performance in his analys.”

Agreed. Not just one IV estimate, but four, each using different methods and quite detailed.

Would be interested if the accounting nerds on the board (you know who you are) had any comments on any/all of his methods and/or results.

Liked Bloomstran’s comments about Buffett claiming he gives enough info on the company that even his two sisters - “Dear Doris and Bertie” - “would understand what I was talking about.”

Bloomstran cries B.S. (not balance sheet) on more than one occasion. Good for him.

On the other hand, If I were Buffett and serious about significant buying backs going forward, would I broadcast to shareholders and the investment public at large that shares are undervalued by as much as 30%(Bloomstran’s highest IV estimate)?

Probably not.

There would likely ensue a feeding frenzy that would take the market price quickly up to something much closer to IV.

Maybe better to keep information vague and incomplete to keep IV estimates fuzzy and low.

Instead, if you are a large shareholder and are interested in selling to us, Let’s have a private call and talk about a price attractive to both parties, without letting the rest of the poor schmu..s, shareholders know what the transaction price was.

I’m oK with that as a ”small time”. (< $20 MM) shareholder if it means Buffett can hoover up significant amounts of stock at a discount to IV conservatively calculated.
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