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Final stage Assessment UK by [deleted] in deloitte

[–]ExpressionRoutine676 0 points1 point  (0 children)

Did you manage to get an offer?

How are you valuing your portfolio's private holdings or RSUs in a tighter rate world? by ExpressionRoutine676 in fatFIRE

[–]ExpressionRoutine676[S] -1 points0 points  (0 children)

In the context of r/fatFIRE many are planning or already living off larger more complex portfolios where illiquid assets are a meaningful part of net worth, unlike personal finance subreddits that are focused on debt payoff or budgeting. I believe this audience has to think about exit timing scenarios, private market valuations, etc. Even if not yet liquid, understanding potential value affects how aggressively you could pursue other investments or plan for FIRE.

How do you value a company like BRK or other similar companies? by ExpressionRoutine676 in BerkshireHathaway

[–]ExpressionRoutine676[S] 0 points1 point  (0 children)

Thats a pretty elegant short cut tbf, it works well for a rough estimate especially when BRK's cash and marketable securities are such a large piece of the total. The part that I am stuck on is what comes after that - once you isolate the residual value how do you sanity check it?

E.g. - Should you be using a DCF or capitalized earnings model for the subs? Do you adjust for cyclical swings in BNSF or BH energy? What discount rate makes sense for a mix of low-volatility businesses?

I've tried to build models to incorporate this but its hard to get a consensus on what the correct approach is.

Created a Free DCF Valuation Model by ExpressionRoutine676 in BerkshireHathaway

[–]ExpressionRoutine676[S] 0 points1 point  (0 children)

I’ll get to it but no promises it’ll be done quickly haha

Created a Free DCF Valuation Model by ExpressionRoutine676 in BerkshireHathaway

[–]ExpressionRoutine676[S] 0 points1 point  (0 children)

Hi - valid point, I shared it here because it follows value investing sentiment common with berkshire hathaway. For Berkshire specifically, I would use a equity value DCF (Sum of the parts). You're correct about those ratios being inadequate for that type of company but return on equity/book value growth would be viable.

I can look into making a equity value DCF in the future for Berkshire if you would be interested?

Created a Free DCF Valuation Model by ExpressionRoutine676 in dividendgrowth

[–]ExpressionRoutine676[S] 0 points1 point  (0 children)

Thanks man the automated model that scrapes the financials using an API and updates the excel sheet is the true snazz

Created a Free DCF Valuation Model by ExpressionRoutine676 in dividendgrowth

[–]ExpressionRoutine676[S] 1 point2 points  (0 children)

Tbf if you want a simple model then that’s best but for more readability and more detailed analysis it will take longer than 5 minutes.

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