A Small Reason Berkshire Hathaway's Undervalued

Updated

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA discusses topics across the investing world.

Warren Buffett is in an interesting position. Breaking with prior practice, his company, Berkshire Hathaway, has decided to buy back shares of its own stock when they trade at 110% of book value or less. But buying back shares means, by definition, being on the other side of the transaction from your own shareholders. In the interest of full disclosure, Buffett's latest letter to shareholders details why he believes Berkshire Hathaway is worth far more than its book value. Anand shares his favorite reason.

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At the time thisarticle was published Anand Chokkavelu, CFA, owns shares of Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway.Motley Fool newsletter services recommendBerkshire Hathaway. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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