Photographer: ... [+] SeongJoon Cho/Bloomberg BLOOMBERG NEWSNext couple of years, I’d expect Berkshire Hathaway’s BRK.B 20% premium over asset value to melt away. On Berkshire’s equity base, over $400 billion, Apple sits at 25% and is half the portfolio’s asset value. Everyone’s entitled to one or two portfolio luxuries, but Buffett has carried such a concept to extremes with great courage. Conceptually, anyone can buy Apple and a few bank stocks, say JPMorgan Chase JPM and Citigroup C , thereby eliminating the “Buffett premium.” Why not? Not the time for railroads like Burlington Northern, Precision Castparts and oil related Lubrizol.

Source: Forbes August 12, 2020 19:16 UTC