Capital structure
Float, debt and book
Why GAAP liabilities are the wrong number to subtract from a two-column SOTP. Only parent-level bonds come off intrinsic value.
GAAP liabilities
$512.9B
Book equity
$747.9B
Deducted in IV
$20.4B
Cash / market cap
33.7%
I&O cash + T-bills
Class A shares
488K
Class B shares
1408M
B-equivalent
2141M
A × 1,500 + B
IV vs book
+65.7%
$1.24T IV
Dry powder
Insurance & Other cash and T-bills relative to the live market cap. Deploy scenarios live on the Overview page.
$359.2B cash · $1.07T market
Liability stack
| Item | Amount | SOTP treatment | Share of GAAP |
|---|---|---|---|
| $177.5B | Not deducted | 34.6% | |
| $90.2B | Not deducted | 17.6% | |
| $23.5B | Not deducted | 4.6% | |
| $61.8B | Not deducted | 12.0% | |
| $18.2B | Not deducted | 3.5% | |
| $20.4B | Deducted | 4.0% |
What the old model did
Gross assets minus all GAAP liabilities double-counted railroad and utility debt (already inside after-interest earnings), insurance float (already funding column one), and deferred tax on unrealized gains. Book equity of $747.9B is the GAAP residual. Two-column IV sits above book because operating businesses are worth more than plant and goodwill on the balance sheet, and because the public equity portfolio is marked at market.