What are /r/brkb's favorite Products & Services?

From 3.5 billion Reddit comments

There's a great book called Capital Allocation that walks through some of Buffett's early business decisions that led to the giant we know today. It shows how Buffett looked at every line item of the textile business and tried to minimize costs (lowering inventory levels, reducing debt, etc.) and diverted that to buy other businesses.

Blue Chip Stamps was one of the first "float" businesses that Buffett bought. Even with declining stamp revenue, a combination of slow redemption and Buffett/Munger gaining control of the float meant that they were able to buy great businesses that have contributed to the much of Berkshire's success today (See's Candies for example).

If you want a book that has it all (except for the video) try "The Complete Financial History of Berkshire Hathaway: A Chronological Analysis of Warren Buffett and Charlie Munger's Conglomerate Masterpiece Hardcover – April 13, 2021" here: https://www.amazon.com/Complete-Financial-History-Berkshire-Hathaway/dp/0857199129

I'm not sure I agree with the revenues being 5% YoY. I'd give it 10% actually as a conservative estimate.

The EBITDA YoY is 15% and the revenue YoY is ~12% (over the past 10 years).

Keep in mind that the management has been buying back like 1-2% of their stock. And they did so even in the past quarter, even when the value of the share was around 140. I don't think Apple management is greedy to buy back when its overvalued.

I also calculate their EITR (incomeTaxExpense / incomeBeforeTax) as ~13% but in some other places, you can see they never really pay more than 6% per year (https://finbox.com/NASDAQGS:AAPL/explorer/inc_tax). I'm not sure how you calculate that in your own valuation.

Your capex seems to be a little high as well. Why the jump from 11.1 - 19? In tech, usually capex is 15-25% of operating cash flow.

Those are probably a few of the glaring factors but if I calculate based on my own assumptions and a few other factors, I come out with a $210 FMV.

"Return on Invested Capital For British American Tobacco p.l.c. (BTI) | finbox.com" https://finbox.com/NYSE:BTI/explorer/roic#:~:text=British%20American%20Tobacco's%20return%20on,2016%20to%202020%20averaged%209.0%25.&text=British%20American%20Tobacco's%20return%20on%20invested%20capital%20decreased%20in%202016,7.8%25%2C%20%2B...).

Oh wow. So lovely.

Can I ask how you got these or if you made them?

I am nearly finished Damn Right! which is a biography of Charlie Munger. I have so much respect and admiration for this gentleman. While reading Janet Lowe's book, I found myself at times howling and giggling; and at other times holding back some tears. Charlie has a very sweet and caring side to him that doesn't get reflected at the annual meetings. He also lives by his own score-card which is so nice. I really enjoyed reading his lawyery days. He is what is meant by "sui generis".

I just hope I get an opportunity to at least see him one day - unfortunately I discovered Buffett and Munger only just recently and covid has prevented me from making plans to visit Omaha. But I'm hoping things return and their constitution remains robust enough to keep going a bit more.

It's complicated, Berkshire ended up owning a huge part of Bank of America via warrants, etc.

If you buy this book, you can probably get all the details and add it up:

The Complete Financial History of Berkshire Hathaway: A Chronological Analysis of Warren Buffett and Charlie Munger's Conglomerate Masterpiece

https://www.amazon.com/Complete-Financial-History-Berkshire-Hathaway/dp/0857199129