Kennon-Green & Co. Global Asset Management, Wealth Management, Investment Advisory, and Value Investing
Oct62011
Is Wells Fargo Stock Undervalued

Is Wells Fargo Undervalued?

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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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Oct52011
Morningstar Berkshire Hathaway Valuation Commentary

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

Case Studies & Profiles5 Comments

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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Sep262011
Serosorting Assortative Mating and HIV

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

Mail Bag2 Comments

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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