Keep pulling the thread on Chris Bloomstran.
Chris Bloomstran estimates Berkshire Hathaway's intrinsic value is almost $1.25 trillion, representing a 9.3% year-over-year growth based on his valuation methods.
Chris Bloomstran estimates the intrinsic value of Berkshire Hathaway's B shares is $570 per share and its A shares are $855,396 per share.
Greg Abel initiated share repurchases for Berkshire Hathaway in 2024 after the stock declined following the company's earnings release.
After making adjustments for currency movements, reserve development, and goodwill write-downs, Chris Bloomstran calculates that Berkshire Hathaway's operating earnings actually increased by $1.1 billion, contrary to the reported decline of nearly $3 billion.
Chris Bloomstran predicts that Berkshire Hathaway's intrinsic value will grow annually on average between 10% and 12% for the next 10 to 15 years.
Chris Bloomstran believes that at the next major market downturn, Greg Abel will need to deploy on the order of $300 billion of Berkshire Hathaway's capital.
The S&P 500 currently trades for 26 times earnings against the second-highest profit margin in stock market history.
Chris Bloomstran predicts that the profit margins of large tech companies are likely to contract due to rapidly growing depreciation and interest expenses from massive AI-related CapEx.
The largest hyperscalers spent just under $400 billion on CapEx last year, supporting an estimated $30 billion in aggregate incremental revenues.
Projections suggest that $3 trillion or more will be cumulatively spent on AI CapEx over the next 5 to 6 years.
OpenAI has cumulatively raised approximately $73 billion and has already burned through $50 billion of it.
Anthropic's Claude models are gaining significant corporate traction, causing OpenAI's share of the AI search market to drop from the mid-80% range to the mid-60% range.