CSX - Berkshire Hathaway Q2 Earnings Q2 Book Value Estimates. Are Real Buybacks Finally Here?
In my Q1 Berkshire update, I discussed Buffett's decision to stop using book value as the valuation metric of choice, as Berkshire Hathaway (BRK.A) (BRK.B) transitions from a holding company into a conglomerate of operating businesses.
Berkshire's shift away from book value is due to the accounting treatment of acquired businesses: they can never be marked up and can only be marked down. Burlington Northern Santa Fe, which Berkshire acquired in 2009, is still carried on the balance sheet at its ~$34 billion acquisition price, while competitors CSX (CSX