Whitney Tilson's Latest Presentation On Why He's More Bullish Than Ever On Berkshire Hathaway

In his latest letter to investors, Whitney TIlson of hedge fund T2 Partners, offered a mea culpa of sorts for missing the latest leg of the rally — underperformance that was due in large part to his ill-fated short positions.

His long book, however, has done well, and among his top picks is Berkshire Hathaway, which he’s been a fan of seemingly forever.

In fact, he’s more bullish than ever on the stock, which he calls a 75-cent dollar that’s growing its operating businesses, without full credit from investors.

For example, investors aren’t appreciating the Burlington Northern acquisition, which is already contributing nicely to the business.

The intro


The firm's history

An eagle-eye look at the Berkshire empire

The basic numbers

The business, broken down by units

Earnings of various lines

Surprisingly, earnings growth has grown over time

Burlington Northern was a monster

Buffett really took advantage of the downturn of 2008

To value Berkshire, imagine splitting off the investments from the operating businesses

The multiple is currently cheap

Recently multiple have been particularly compressed

But even with a conservative multiple, the stock is cheap

In 12 months the stock could be 43% higher

Some possible drivers of a share gain

Obviously there are some unique risks (the stock market, the economy, Buffett's own future

The bottom line though: the stock is just cheap

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