Berkshire Hathaway Inc. (B) (BRK.B)

You are essentially buying the US economy, consumer and industrial. Not particularly cheap.

(Market Call Minute.) The insurance business will ultimately drive this, and it is hard for him to get excited about the insurance side of the business right now.

This has done very well, not so much recently with its market investments, but it’s private investments. He worries because of Mr. Buffett’s age, and wouldn’t put too much money into it.

(Market Call Minute.) A very large company with very good managers with a diverse group of companies.

You only pay to get in and out, compared to paying management fees yearly for mutual funds. They have built a wonderful company that has longevity. Also, have delegated a lot of authority to their next generation of management. It gives you a broad cross-section of companies. Reasonably valued. You should buy this with the intention of owning it for a while.

Everybody talks about this, but very few people own it. Warren Buffett says the time to buy a stock is when it is trading at about 1.2X BV. Thinks this is trading at 1.3X today. This is a company that keeps adding inexorably to its earnings.

If you are going to invest in this, you have to believe the American economy is going to do well over time, because this has made a big bet on the US economy. He would never bet against the stock. Trading at 1.2X BV. Until there is better sentiment in some of the holdings and an improvement in the US economy and industrial economy, the stock is going to be stuck here.

This is the ultimate buy and hold company. There is nothing wrong with the company, but it is a conglomerate. It is extremely well diversified. They are good stewards of capital.

He always wanted to own it and took advantage of the pullback. It is not trading at too high a multiple. This is the most attractive buy-in opportunity he has had.

In his opinion, this has fallen to the lowest price book level since the financial crisis. They continue to grow their BV. Once the Kraft-Heintz deal closes, that is going to add earnings power. He likes the safety and security of owning good quality companies within their holdings. Also, has a giant equity portfolio. He could easily envision this stock getting back to the $150-$160 level.

Chart shows support in the 2013-2014 area. He is expecting a small bounce up followed by another leg down, probably at $110-$111. He would look to buy at around $120.

Effectively a levered bet on the US economy. They can borrow money cheaper than everyone else. You might as well lever an investment with them. They are so big it is hard for them to move the needle. The two portfolio managers they hired did not distinguish themselves in 2008 and if that is who he chose when he can choose anyone, that tells us something. The two managers have done extremely well. It is fine from a succession point of view.

You can treat it as an ETF. It is a good growth story. The biggest negative is that Buffet is 80. He would not sell it, but if Buffet passes the torch this will definitely sell off.

He feels the passing of Warren Buffet would not affect the stock fundamentals, nor the market in general. BRK.B-T has a succession plan.

A good entry point and he would be a buyer. Warren Buffett is the greatest capital allocator and one of the greatest investors. Looking at this for his clients. A wonderful company, and at some point are probably going to have to start a dividend.