Kennon-Green & Co. Global Asset Management, Wealth Management, and Investment Advisory

Morningstar Berkshire Hathaway Valuation Commentary

Morningstar Says Berkshire Hathaway’s Intrinsic Value Is $89 Per Class B Share. I Think They’re Wrong.

I’ve told you in the past that Berkshire Hathaway appears to be trading at the lowest valuation in nearly a decade.  Recently, Morningstar revised its intrinsic value estimate for the Berkshire Hathaway Class B shares, stating they believe the stock has an intrinsic value of $89 per share (equal to $133,500 per Class A share since it takes 1,500 Class B shares to equal a single Class A share). I find this interesting for several reasons.  First, Morningstar’s intrinsic value calculations are often reasonable, in my opinion.  On more than one occasion, we’ve been within a single percentage point after I had valued a firm and then cross checked third-party estimates as part of the process to see if there were major disagreements.  But in this case, I just think they’re wrong.

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Serosorting Assortative Mating and HIV

Mail Bag: The Ethics of Gingerism, Racism, Serosorting, and Discrimination in Relationships, Dating, and Sex Due to Assortative Mating

Today’s mail bag question deals with the ethics of the mental model called assortative mating.  This refers to the phenomenon whereby individuals choose to engage in relationships with others who are like themselves (positive assortative mating) or dissimilar (negative assortative mating).  There are strong economic arguments that the perceived rise in income inequality is due to assortative…

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Wendy's Hot 'n Juicy Dave Cheeseburger

Wendy’s Brilliantly Relies on Mental Models from Psychology to Reinvent the Classic Wendy’s Cheeseburger

Wendy’s recent commercial introducing the remade cheeseburger named after founder Dave Thomas is one of the best examples of marketing and psychology I’ve ever seen.  It’s brilliant; mental models applied in a constructive way.   I’m not going to take the fun out of it, but be on the lookout for some of the clues…

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Kennon-Green & Co. Global Asset Management, Wealth Management, and Investment Advisory