August 10, 2011
– Comments (3) |
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But when it comes to banks in this environment, I think we should not use book value as the most important measure of value. In an economy that'shumming along, I agree that book value is an excellent indicator of a bank's value as a company. With whatever is still lurking on their books, I would not trust book value.
To be fair, you did mention this.
Great article, BullnBear.
I haven't looked at Kinder Morgan in a long while. Maybe I should check it out.
I've actually bought some shares in GGP spin-off, Howard Hughes Corporation (HHC), ever since the market dip.
Berkshire Hathaway (NYSE: BRK-B) closed at a 4% premium to book! You get buying the capital allocation skills of Uncle Warren and the talent all his operating CEOs for a song. Even assuming Buffett has passed and Berkshire were to distribute to shareholders the excess cash it generates, the operating CEOs have to be worth a decent premium over book.