Morningstar Says Berkshire Hathaway Stock is Reasonably Valued, Can Still Grow 8 to 10%

Berkshire Hathaway (BRK.A) stock is reasonably valued, according to Matt Coffina, Editor and Portfolio Manager of Morningstar StockInvestor. Coffina says Berkshire is trading at a discount to Morningstar's estimate of intrinsic value and it remains its largest holding in one of the Morningstar's model portfolios. Coffina believes intrinsic value can continue to compound at 8 to 10% a year. He notes the stock will provide steady returns even though Berkshire will be unable to grow at its historic rate of 20% a year. Coffina also believes that Berkshire is well positioned once interest rates start to rise. Additionally, he said Buffett satisfactorily answered shareholder questions about lending practices at its Clayton Home unit, and that Buffett defended concerns about its 3G's management style. Berkshire Hathaway has partnered with 3G on past acquisitions. Coffina said comments made by Warren Buffett and Charlie Munger at the Berkshire Hathaway annual meeting demonstrated heir disciplined management philosophy. Coffina spoke with TheStreet's Rhonda Schaffler in Omaha, Nebraska.