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

Occupy Wall Street Part II: What Is Money? Do Liberal Arts Suffer at the Hands of a Capitalist System?

Yesterday, I explained how most of the people in the Occupy Wall Street protest haven’t yet realized the struggle isn’t between the rich and the poor – it is between the knowledge workers and manual workers, which Peter Drucker predicted in startling detail decades ago.   Charles Hughes, a professor at Henderson State University, had…

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Is Wells Fargo Undervalued?

I am reading the Wells Fargo & Company annual report again for the fourth time this year, as well as conference call transcripts, analysts reports, and a host of other documentation.  I’ve been looking at making some additional purchases of Wells Fargo & Company for the long-term holdings through some of my personal retirement trusts and plans, including the only one I discuss on the site, the KRIP portfolio, because I’m convinced the “new” bank, which includes the acquisition of Wachovia during the Great Recession and financial meltdown that doubled the size of the “old” bank, is significantly undervalued.

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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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