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We've been discussing how information moves selectively in and out of the Berkshire financials/shareholder letter. Here is an example that concerns the critical question of how to value Berkshire. You can draw your own conclusions.

2005

In an earlier post, one smart person responded that they're ok with MidAmerican and BNSF being combined because these companies file separate financials and they get the data on their own. I understand why you say this because as a diligent investor you are better off. But here's why I disagree with the principle.

This continues a discussion with Ravi. His salient point: "One of the things that I have found frustrating over the years is that Berkshire often rolls subsidiaries that used to provide granular data into broader groups as the company grows over time.... It is a gradual trend from year to year but when you go back a decade or more, the reduction of granularity really hits you....I go back and forth [but] think we come back to needing a basic level of trust to invest in Berkshire...

People on this page are asking for more information about how Warren analyzes financial statements in response to a comment I made there. So yes, I am writing the investing book. A biography can't contain the detailed examples that people want, and someone (by default, me) needs to put together a coherent framework of how Warren actually invests. Yes! I will give you some bits of it as I go along, alongside, etc.

Berkshire is not going to raise the offer. (Amend that, maybe a tiny symbolic gesture but nothing meaningful.) I don't see any compelling reason why it has to do so (fairness typically is not a reason that makes Warren pay people more money). Berkshire will tender now, and take in whatever shares are surrendered. Berkshire will tender again later whenever the stock is cheap enough. Eventually it will get 10% of the stock and squeeze out the rest. This is what it did with Cologne Re.

In The News

By Alex Konrad, contributorJuly 9, 2010: 2:44 PM ET

Warren Buffett biographer's Alice Schroeder on Buffett's own internal war and who the real villains were in the great stock market crash.

The Motley Fool's (TMF) Mac Greer recently had a chance to talk with Warren Buffett biographer Alice Schroeder, author of The Snowball: Warren Buffett and the Business of Life.

An Absorbing Read

by Prasoon Kumar of www.uread.com

 Although The Snowball is his (Warren Buffet's) official biography, hence it is not expected to answer difficult questions; still The Snowball is an absorbing read. The author of the book The Snowball Alice Schroeder has approached her subject very seriously and she covers very vast terrain in the book at the same time. Read more

“Will mesmerize anyone interested in who Mr. Buffett is or how he got that way. The Snowball tells a fascinating story.”

New York Times