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New publication about "piggyback investing" in proven/promising capital allocators and other attractive value ideas. By @ValueEklund. Join our free newsletter!
Jun 28 9 tweets 7 min read
Why $BRK's 2019-20 purchase of #Japan Inc is a potential #stagflation trade for the history books

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In this week’s PBL (just out!) we PiggyBack:

Warren Buffett’s Berkshire Hathaway into Japanese trading houses

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Let's get to it:

August 31, 2020. $BRK sent out a release that left its many U.S.-focused watchers curious:

Berkshire disclosed having 5+% stakes in all five of #Japan's "big five" general trading houses (Sogo Shosha) after purchasing over 12 months in Tokyo Stock Exchange

2/X     “I am delighted to have Berkshire Hathaway participate
Jun 21 28 tweets 15 min read
1 New to investing?

2 Confused by #fintwit jargon?

3 Do we trust people presenting “valuation” to know what they don't know?
(Hint: “my-laser-eyed-golden-skin-ape-pic-is-worth-at-least-twice-your-diamond-skin-ape-pic” = relative pricing. Not valuation)

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1/X Image Equity = Assets - Liabilities

But what asset and liability values are we going to use?

The answer as always: it depends on what we are going to use it for.

Here is a summary of equity metrics, from the most conservative: