By Dan Ferris in Extreme Value:

Berkshire Hathaway filed its quarterly financial statement with the SEC on Friday. The first thing you always look at with Berkshire is the change in book value. Warren Buffett has said movements in book value are a reasonable proxy for movements in the shares' intrinsic value.

Last year, book value fell by almost 10%. This quarter, Berkshire's book value increased 11.4%, due to rising stock and bond markets. The stock closed around $108,000 per share on Friday.

There are few better long-term holdings than Berkshire, if preserving capital and earning adequate returns is what you seek… with occasional opportunities to make a much larger return. The stock is up 40% since March. I think Berkshire's intrinsic value is around $130,000 right now.

Crux note: Dan Ferris is the editor of Extreme Value. For serious long-term investors, it's one of the most useful advisories you can buy for any price. In Extreme Value, Dan has a class of companies he calls "World Dominators" - high quality stocks with tons of upside. Learn more about Extreme Value here...

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