Whoever said Warren is unwilling to tout his company or his company's stock?
Sort of reminds one doesn't it, of the frequent line of dialogue in the cowboys and indians movies of yesteryear, "White Man Speaks With Forked Tongue?"
Berkshire Surges After CEO Buffett Says Stock Is Undervalued
2010-01-21 15:26:45.401 GMT
By Andrew Frye
Jan. 21 (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. climbed to a 14-month high a day after the billionaire chief executive officer said the company’s stock is undervalued.
Berkshire Class A shares advanced $4,890, or 4.8 percent, to $109,180 at 10:01 a.m. in New York Stock Exchange composite trading. The company has surged 9.1 percent since the close of trading on Jan. 19, the biggest two-day gain since March.
“On a historical basis, Berkshire is selling quite low, relative to book value,” the measure of assets minus liabilities, Buffett said yesterday in an interview in Omaha, Nebraska, where the company is based.
Berkshire traded at about 1.23 times book value on Jan. 19, compared with the average of about 1.76 over the past 15 years.
Evaluating Berkshire by book value “makes a fair degree of sense,” Buffett said in the interview. Buffett spoke before a meeting in which shareholders authorized splitting the lower- priced Class B shares to facilitate Berkshire’s $26 billion purchase of railroad Burlington Northern Santa Fe Corp.
Editors: Erik Holm, Dan Kraut
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