Goldman Sachs Says to Buy Berkshire Hathaway (BRK-A, BRK-B)

Banking, finance, and taxes

Published: June 29, 2010 8:07 am

Last Updated: April 27, 2020 10:25 pm

Warren Buffett likes Lloyd Blankfein. Now Goldman Sachs likes Berkshire Hathaway Inc. (NYSE: BRK-A, BRK-B). In new coverage this morning, Goldman Sachs has initiated Warren Buffett’s conglomerate with a BUY rating. The targets were put at $152,000 for the A-shares and $101.00 for the B-shares.

What is interesting is that Goldman’s note says that the disconnect between Berkshire’s market value and the intrinsic value of the combined business operations is close to a decade high.

The recent moves have taken pressure off the company from having to be an incredibly astute investor into more of an astute business manager. The firm noted that the BNSF acquisition now puts about half of its intrinsic value from operating entities.

BUFFETT’s LATEST STOCK HOLDINGS

The latest run-up in Berkshire Hathaway shares was into the Russell 1000 Index addition. The profit taking from index-arb players and the market itself has shares weak this morning despite the call for upside of about 25%. Berkshire Hathaway’s B-shares are down around $80.60 after an $81.02 close yesterday.

“Gold horseshoe loves Buffett’s heel.”

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JON C. OGG

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