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It's a conservative estimate of what a company might be worth if liquidated.
By February this year, investors were valuing firms with casinos in Macau at less than the book value of their assets, implying that they would be more valuable if liquidated than as going concerns (see chart).
He also hints that Berkshire's "intrinsic value," what it would be worth if liquidated( it will never happen) was substantially greater than the $110 market price in late February , 2012when he wrote the letter.
Similar(55)
When Mr. Robertson announced in March that he was winding down his Tiger Management hedge fund, he said five of its equity investments would be retained a while, because they were large stakes relative to the size of the companies and would fetch more if not liquidated abruptly.
PAGE A10 TREASURER BACKS WORKERS Workers at a bankrupt suburban Chicago suit company that calls President Obama one of its customers are getting support from the Illinois treasurer, who said that if Wells Fargo liquidated the company, the bank could forfeit the state's $8 billion portfolio.
For example, we can look at Apple's financials and determine its book value — what the company's assets would be worth if hypothetically liquidated today.
If Hostess liquidated or the CEO was fired without cause, he'd still get a "golden parachute" (severance pay) of $1.95 million.
There was also the risk that the structured securities held in Anderson's investment portfolio would either default or, if ever liquidated, sell at a discount.
Their claims will come ahead of the government's if Solyndra is liquidated but not if it reorganized; the government has not entirely waived the privilege of coming first.
If it is liquidated, its cash would be used to pay those bondholders first.
They will be expected to pay their own way and liquidated if they do not.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com