The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.

In today's edition, Austin explains why he owns shares of Berkshire Hathaway. The one main reason is that these shares are still significantly undervalued. Warren Buffett, a value investor by trade and the CEO of Berkshire Hathaway, indicated he'd be willing to buy back shares at 1.1 times book value or less. This indicates that the true value is much higher than this, and who would know better than Buffett? Austin isn't the only one that feels this way, though. Whitney Tilson recently presented an outline of his belief that Warren Buffett's Berkshire Hathaway shares were undervalued by as much as 30%.

To read about another, lesser-known company that still looks like a steal today, check out our report: "The Motley Fool's Top Stock for 2012." In it you'll learn about a company that's still flying under Wall-Street's radar. Click here to learn more.

At the time this article was published Austin Smith owns shares of Berkshire Hathaway. The Motley Fool owns shares of Apple and Berkshire Hathaway. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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