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Why Berkshire Hathaway Looks Cheap Today

By Mark Reeth and Brendan Mathews - Mar 14, 2014 at 3:26PM

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For investors looking to get in on Berkshire Hathaway, now might be the time.

Now that a week has passed since Berkshire Hathaway ( BRK.A -0.45% )( BRK.B -0.59% ) reported earnings, in today's Stock of the Day, Motley Fool analyst Brendan Mathews takes a look back at another solid quarter from Berkshire and shares his thoughts about the stock today.

Though Class A shares are famously the most expensive stock on the market from a share-price perspective, Brendan discusses its valuation and why he considers Berkshire to be undervalued. He also lets investors in on the steps he uses to value Berkshire Hathaway.

Ultimately, he sees this as a great collection of businesses that is continuing to grow, with a price-to-tangible book value well below that of the S&P and a share price well below the valuation he gives the stock. In his book, that makes Berkshire a great buy for investors today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.A
$418,676.00 (-0.45%) $-1,890.00
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.B
$277.43 (-0.59%) $-1.66

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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