QQQ - Berkshire Hathaway: Hit To Book Value Could Be Drastic But A Buying Opportunity Comes With It
- Berkshire book value is about to be slammed as the bear market is getting around to value stocks; Apple in particular will be a drag with Bank of America second.
- Berkshire itself is now down 25% from its March 31 high when its defensive value made it overpriced; it's now cheap at $270.
- Rule ASU 2016-1 requires that unrealized stock gains/losses be included in net income and book value. Buffett recommends using dividends paid to Berkshire and "look through" to retained earnings.
- The key numbers at Berkshire are the gusher of roughly $39 billion in cash flow and the $26ish billion after subtracting CAPEX.
- The bear market may be scary but it is setting up outstanding opportunities at Berkshire for purchasing growth stocks and share repurchases.
For further details see:
Berkshire Hathaway: Hit To Book Value Could Be Drastic But A Buying Opportunity Comes With It