> Warren Buffet Two Column Method?

Warren Buffet Two Column Method?

Posted at: 2014-12-05 
The stocks, bonds, and cash equivalents pertain to Berkshires investments in these items. If you look on the balance sheet on page 30, it has Berkshire's assets broken down into categories. Cash & Cash Equivalents, Fixed Maturity Investments (aka "bonds"), Equity Securities (aka "stocks"), and other which probably includes a bunch of derivatives like warrants, options, etc. There is also some cash and investments in the railroads/utilities and financial products sections. If you add these up you get about $148 Billion. This is the market value of these investments at the time the balance sheet was posted on Dec 31, 2010.

The insurance float is a bit more tedious to calculate. Motley Fool has a good article which shows you the steps:

http://www.fool.com/personal-finance/ins...

It's going to be the "loss and loss adjustment" expenses shown on page 30 plus or minus a few other things.

For the investments per share if you take the 158 billion and divide by the total number of shares currently outstanding you get $94 billion - which Buffett describes as "Investments per share".

Finally starting on page 75 it shows Berkshire's non-insurance business results. If you look up pre-tax earnings on each of the tables, add them up, and divide by the total number of shares you get close to 5926.

Remember that some of the numbers on the financial statements are rounded, so you might not get the exact numbers without having access to Berkshires internal accounting records, but you should get close enough for it to be reconcilable.

When his company Berkshire Hathaway reports earnings, it posts all the financial details about its investments. I can't recall exactly the figures of each.. but as far as i remember last earnings report, equities investments were above $100 billion, cash close to $40 billion.

I think soon they will report for the previous quarter.

Google: Berkshire Hathaway investor relations. Even in the website itself it is gonna be tricky to find. Look for earnings reports..

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I just read an article about buffet's two column method. Part of the article states:

The first component of value is our investments: stocks, bonds and cash equivalents. At yearend these totaled $158 billion at market value.

Where do these figures come from in financial statements?