Buffett’s Berkshire Hathaway May Be Undervalued, Barron’s Says Share Business Exchange
 



Jan. 10 (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. may be undervalued after investments in Goldman Sachs Group Inc. and General Electric Co. and a strong 2010 profit outlook, Barron’s reported, without citing anyone.

Berkshire’s Class A shares are valued at about $100,000, or 1.2 times the Omaha, Nebraska-based company’s book value at the end of 2009, Barron’s said.

That compares to an average of 1.65 times book value in the past decade, the publication said in its Jan. 11 edition.

Berkshire’s book value could rise to $92,000 to $95,000 a share from $84,500, the weekly newspaper estimated. 

Bufffet, who’s led Berkshire as chairman for more than four decades, made “smart high-yield investments” during the financial crisis, that may increase operating profits this year to a record $6,000 per Class A share from an estimated $4,900 in 2009, Barron’s said.

Berkshire climbed 2.7 percent in New York Stock Exchange composite trading in 2009, less than the 23 percent advance in the Standard & Poor’s 500 Index.