What Does Whitney Tilson Think about Berkshire Hathaway?


Jun. 7 2016, Updated 11:15 a.m. ET

Berkshire Hathaway’s performance

Currently, Berkshire Hathaway (BRK) is trading at $142.60. It’s trading at price-to-earnings multiple of 14.35x. On a YTD (year-to-date) basis, the stock returned 8.4% as of May 31, 2016. Compared to its peers in the financial sector (XLF) (VFH) such as JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C), Berkshire Hathaway provided decent returns on a YTD basis. The above stocks returned -1%, -6.6%, and -10% on a YTD basis as of May 31, 2016.

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Whitney Tilson’s optimistic view on Berkshire Hathaway

Whitney Tilson maintains his biggest long position in Warren Buffett’s Berkshire Hathaway. He thinks that the company is trading at a 25% discount on June 2, after providing a 10% return to investors on a YTD basis as of May 25, 2016. He said that he studied and wrote about the company. He thinks that the company will provide moderate growth.

He focused on the company’s operating cash flow and operating earnings. According to Tilson, the company’s operating earnings look good. In the long term, the stock will provide a good return for investors.

In the next part, we’ll analyze Whitney Tilson’s top stock picks.


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