WHITNEY TILSON: Berkshire Hathaway Could Surge 70% In 12 Months

Whitney Tilson, the brains behind T2 Partners, is bullish on Berkshire Hathaway, the holding company headed by Warren Buffett.

In a recent presentation, Tilson laid out an 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.

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Photo: T2 Partners LLC

Berkshire Hathaway closed at $117,434 today.  If Tilson’s right, Berkshire shares offer a 70% return in just 12 months.

Here are the catalysts he lists that could ignite a rally in the stock.

  • 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

Tilson’s argument for Berkshire is worth reviewing.

Click here to see Whitney Tilson’s bullish case for Berkshire Hathaway >

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