In 2018: as a consequence of its large

cash balance and the stock not dipping

frequently under 1.20x its book value,
Berkshire is now permitted to "repurchase
shares any time that Warren Buffett,
Berkshire’s Chairman of the Board and Chief
Executive Officer, and Charles Munger, Vice

In this section, I will provide three reasons
why Berkshire could be an interesting
investment at this moment: undervaluation,
a possible increase in buybacks and a shift in
portfolio strategy.
First, it is remarkable that Berkshire
Hathaway is currently being valued at
its lowest valuation since
Also, the low valuation makes the stock
a lot more interesting to invest in. I am
not only talking about the valuation of
the holding (in terms of book-to-market
ratio), but also about the valuation of
the underlying investments. As you can
see below, the portfolio which Berkshire
is holding is currently valued at a free
cash flow yield (operating cash flow -
CAPEX/market cap) of 10.46%, which is