Why This "Baby Berkshire" Is Saying Goodbye to Book Value

Boston Omaha (NASDAQ: BOMN), both in its business model as well as the tone of its annual letters, appears to aspire to be the next coming of Omaha's most famous company: Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). That shouldn't be a huge surprise, considering one of the company's two CEOs, Alex Rozek, is Buffett's great-nephew.

Though first incorporated as another business in 2009, Boston Omaha took its name and began its current business model in 2015. That's the year Rozek linked up with co-CEO Adam Peterson and bought its first business: a company that owned a building inhabited by a sushi restaurant. Since then, Boston Omaha has raised $480 million and deployed $280 million in over 50 transactions. Those include three wholly owned businesses (billboards, insurance, broadband), one SPAC, and a slew of other minority investments, both public and private.

One of those wholly owned companies is surety insurance company General Indemnity Group. That big investment in insurance definitely invites a comparison to Berkshire, and is also why Boston Omaha's founders tended to use book value as a proxy for Boston Omaha's intrinsic value in its annual disclosures.

Source Fool.com