Why I Own Berkshire Hathaway

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.

In today's edition, Austin explains why he owns shares of Berkshire Hathaway. The one main reason is that these shares are still significantly undervalued. Warren Buffett, a value investor by trade and the CEO of Berkshire Hathaway, indicated he'd be willing to buy back shares at 1.1 times book value or less. This indicates that the true value is much higher than this, and who would know better than Buffett? Austin isn't the only one that feels this way, though. Whitney Tilson recently presented an outline of his belief that Warren Buffett's Berkshire Hathaway shares were undervalued by as much as 30%.

To read about another, lesser-known company that still looks like a steal today, check out our report: "The Motley Fool's Top Stock for 2012." In it you'll learn about a company that's still flying under Wall-Street's radar. Click here to learn more.

Austin Smith owns shares of Berkshire Hathaway. The Motley Fool owns shares of Apple and Berkshire Hathaway. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On April 16, 2012, at 4:22 PM, DoctorLewis4 wrote:

    Well said. Totally agree.

  • Report this Comment On April 16, 2012, at 4:49 PM, zpoet wrote:

    So you essentially told us nothing except the obvious:

    1. You trust Buffet's judgement and include Apple in your reasoning that companies can survive after their leader passes (terrible example because Apple is a trend and will not be seeing this kind of growth in 10+ years, Berkshire is a long-term outlook company)

    2. You are basing your buy on Berkshire's past performance... readily available, let alone known, to the entire investing world.

    Don't just create an article and regurgitate facts that we already know, and especially don't relate Buffet's inevitable passing to Jobs's passing. Apple continues to grow because they are a fad.

    Berkshire will continue to grow, but they are only where they are now because Buffet made strategic investments at opportunistic times that catapulted his company to unimaginable heights. That may not be the case in the future.

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