Monday, December 17, 2007

Buffett's Berkshire Hathaway Overvalued - Barron's

Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research), the conglomerate built by billionaire investor Warren Buffett, could be overvalued, Barron's reported on Sunday.

Barron's estimates that Berkshire is worth about $130,000 a share, about 10 percent below the current level.

Because of its high price relative to its book value and earnings, Berkshire shares could be "dead money for at least a year," the investor weekly said.

Barron's said American International Group (AIG.N: Quote, Profile, Research), Wells Fargo (WFC.N: Quote, Profile, Research), and American Express (AXP.N: Quote, Profile, Research) may be better values in the financial sector.

Wall Street is waiting for Buffett's next move, and insurance broker Marsh & McLennan (MMC.N: Quote, Profile, Research) might appeal to him, Barron's said.

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