{"id":19924,"date":"2023-07-22T23:56:00","date_gmt":"2023-07-22T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=19924"},"modified":"2024-07-12T17:47:04","modified_gmt":"2024-07-12T09:47:04","slug":"increase-intrinsic-value","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/22\/increase-intrinsic-value\/","title":{"rendered":"How can a company increase its intrinsic value per share?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/22\/increase-intrinsic-value\/#Relavent_content_in_my_book\" >Relavent content in my book<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/22\/increase-intrinsic-value\/#Reasons_drive_stock_price_up\" >Reasons drive stock price up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/22\/increase-intrinsic-value\/#How_to_calculate_intrinsic_value_per_share\" >How to calculate intrinsic value per share?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/22\/increase-intrinsic-value\/#My_free_online_calculation_program\" >My free online calculation program<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/22\/increase-intrinsic-value\/#How_does_Berkshire_increase_the_intrinsic_value_per_share\" >How does Berkshire increase the intrinsic value per share?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/22\/increase-intrinsic-value\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relavent_content_in_my_book\"><\/span>Relavent content in my book<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_drive_stock_price_up\"><\/span>Reasons drive stock price up<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010889106?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of Super Growth Stocks Investing<\/a>&#8220;, I have discussed several reasons drive stock price up:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The entire subsection of 1-2, from pages 27 to 35, on analyzing the 3 factors to find the key to stock price rise<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_calculate_intrinsic_value_per_share\"><\/span>How to calculate intrinsic value per share?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010889106?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of Super Growth Stocks Investing<\/a>&#8220;, I discussed how to calculate the intrinsic value per share. See:<\/p>\n\n\n\n<p>The entire subsection of 5-1, from page 322 to page 355, explains in detail what is intrinsic value per share? And step by step through examples how to calculate the intrinsic value of each share.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"My_free_online_calculation_program\"><\/span>My free online calculation program<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For the convenience of investors, I provide a free online calculation program that can calculate the intrinsic value of each share. For details, please refer to my other post: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/11\/dcf-calculator\/\">DCF (Discounted Cash Flow) Calculator<\/a>&#8220;.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_does_Berkshire_increase_the_intrinsic_value_per_share\"><\/span>How does Berkshire increase the intrinsic value per share?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Buffett mentioned the following in his <a href=\"https:\/\/berkshirehathaway.com\/letters\/2013ltr.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">2013 shareholder letter<\/a>:<\/p>\n\n\n\n<p><em>Charlie and I hope to build Berkshire\u2019s per-share intrinsic value by:<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>(1) constantly improving the basic earning power of our many subsidiaries; <\/em><\/li>\n\n\n\n<li><em>(2) further increasing their earnings<\/em> <em>through bolt-on acquisitions; <\/em><\/li>\n\n\n\n<li><em>(3) benefiting from the growth of our investees; <\/em><\/li>\n\n\n\n<li><em>(4) repurchasing Berkshire shares<\/em><\/li>\n\n\n\n<li><em>when they are available at a meaningful discount from intrinsic value; and <\/em><\/li>\n\n\n\n<li><em>(5) making an occasional large<\/em> <em>acquisition. We will also try to maximize results for you by rarely, if ever, issuing Berkshire shares.<\/em><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"141\" height=\"88\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2023\/05\/itrisc-1600x1200-1.jpg\" alt=\"intrinsic value\" class=\"wp-image-19925\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/25\/reasons-drive-stock-price-up\/\">Reasons drive stock price up<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/11\/dcf-calculator\/\">DCF (Discounted Cash Flow) Calculator<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/10\/stock-liquidity\/\">The valuation influence of stock liquidity and stock split on listed companies &#8221; <\/a><\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/06\/impact-of-diversity\/\">The significant valuation impact of diversity to listed companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/07\/valuation-method\/\">Valuation methods significant different between US and Taiwan investors<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em>Disclaimer<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Buffett build Berkshire\u2019s per-share intrinsic value by 5 methods<\/p>\n","protected":false},"author":1,"featured_media":19925,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[343,11],"tags":[48,49],"class_list":["post-19924","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-valuation","category-buffett","tag-brk-a","tag-brk-b"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/19924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=19924"}],"version-history":[{"count":3,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/19924\/revisions"}],"predecessor-version":[{"id":38071,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/19924\/revisions\/38071"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/19925"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=19924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=19924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=19924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}