Buylyst

Published on 03/13/21 | Saurav Sen | 4,587 Words

The BuyGist:

This is our thesis as posted on April 28, 2020 - now in magazine format.
The Thesis Summary (somewhat redacted) is available to all readers.
Thesis details - including 1) BUY/HOLD/IGNORE conclusions 2) whether we still hold the stock, and 3) Valuations - are for members only, accessible upon login.
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Thesis Summary

Written on April 28, 2020: Despite factoring in “key man”, Energy & Airline exposure risks and little to no future growth, BRK is trading at a substantial discount. Much of the value lies in optionality - in its massive cash balance, which we expect to be deployed prudently, especially in a bad recession.

Competitive Advantage - The Castle:

Core Competency? Long-term investments in Private & Public companies across the world.
Products: Better or Cheaper? Better. Business structure and investment style superior.
Growth Prospects? >$100 billion ready to deploy. And warmed up to Tech investments.

Durability of Competitive Advantage - The Moat:

Competition/Threats? “Key Man Risk”. Airlines and Energy exposure.
Moat? Brand value of Buffett/Munger. Company structure. Pile of cash balance.

Management Quality - The Generals:

Strategy & Action? Superior. Investment style lends itself well to bear markets.
Risk Management? Business risk minimal. But investment risk in Energy/Airline exposure.
Valuation? ******Redacted.

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