The operating companies will earn around $50 B this year, growing at 17% as of the first quarter. The company holds $700 B in cash and investments. The current market cap is around $1 T. Thus, the market is assigning a multiple of 6 to the subs. That, ladies and gentlemen is the definition of margin of safety.
The new BRK general counsel just bought $250,000 of the B shares. I will reiterate. The best opportunity to buy the stock since 2000 is hiding in plain sight.
BRK holds $380 B in cash. The money does not belong to the company but to the partners,
BRK will probably not pay a dividend while Warren is still alive because he would balk at paying the taxes,
That will change upon his death, especially since distributions would reduce the charitable organizations need to sell shares.
A low 3% yield would equal about 10 B or 7.8% of the cash, not even making a dent in the pile.
The best part about BRK is that there are so many ways to win. In fact, current prices represent the single best equity opportunity in my 37 years of investment lifetime. Buying more shares tomorrow.