WHITNEY TILSON: Berkshire Hathaway Could Surge 64% In 12 Months

Whitney Tilson is bullish on Berkshire Hathaway.

In a presentation he gave last week, Tilson reiterated his investment thesis arguing that Berkshire was worth $178,400 per share.  He also noted that the company should be worth $200,000 a year from now.

The A shares currently sit at $121,800, which implies a 64 per cent return in 12 months.

Here’s the slide from Tilson’s presentation:

chart

Photo: T2 Partners

Here are the catalysts Tilson identifies that could get shares going:

  • Continued earnings growth of operating businesses, especially as $1+ billion of pre-tax earnings from Lubrizol are incorporated
  • New equity investments
  • Additional cash build
  • Meaningful share repurchases
  • Eventually, Berkshire could win back a AAA rating (not likely in the near term)
  • Potential for more meaningful acquisitions and investments
  • If there’s a double-dip recession, this becomes more likely

SEE ALSO: Berkshire Hathaway Shareholders Face One Risk Greater Than The Death Of Warren Buffett >

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