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Posted On: 04/12/2018 12:10:55 PM
Post# of 59
IAC/InterActive Corp. Has Outperformed Berkshire Hathaway For The Last 20 Years
http://investorsnewsmagazine.blogspot.com/201...ormed.html
Over the past two decades, Barry Diller’s publicly traded dot-com hatchery, IAC/InterActiveCorp., has generated a higher return than Warren Buffett’s Berkshire Hathaway. Much higher, in fact.
Berkshire (ticker: BRK.A), which has handily beaten the broad market over that stretch, traded recently at a price 40% above the latest accounting tally of its assets. Investors pay that “Buffett premium” as a nod to the Omaha value investor’s talent for capital allocation, and, perhaps, on a hunch that Berkshire’s assets are priced too conservatively on its books.
How large is the Diller premium? It’s a discount, actually. IAC (IAC) has a stock market value of $12.4 billion—some 20% below three easiest-to-price assets: 81% of the online dating empire Match Group (MTCH); 87% of ANGI Homeservices (ANGI), which connects homeowners with plumbers, roofers, and other handy pros; and $661 million in cash, after subtracting debt and excluding Match and ANGI.
http://investorsnewsmagazine.blogspot.com/201...ormed.html
Over the past two decades, Barry Diller’s publicly traded dot-com hatchery, IAC/InterActiveCorp., has generated a higher return than Warren Buffett’s Berkshire Hathaway. Much higher, in fact.
Berkshire (ticker: BRK.A), which has handily beaten the broad market over that stretch, traded recently at a price 40% above the latest accounting tally of its assets. Investors pay that “Buffett premium” as a nod to the Omaha value investor’s talent for capital allocation, and, perhaps, on a hunch that Berkshire’s assets are priced too conservatively on its books.
How large is the Diller premium? It’s a discount, actually. IAC (IAC) has a stock market value of $12.4 billion—some 20% below three easiest-to-price assets: 81% of the online dating empire Match Group (MTCH); 87% of ANGI Homeservices (ANGI), which connects homeowners with plumbers, roofers, and other handy pros; and $661 million in cash, after subtracting debt and excluding Match and ANGI.
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