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Berkshire Hathaway Inc Class A BRK.A

Morningstar Rating
$611,244.00 +7,100.00 (1.18%)
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Company Report

Acquisitions, Higher Short-Term Rates, and Improved Equity Markets Have Lifted Berkshire's Value

We continue to believe that Berkshire, owing to its diversification and its lower overall risk profile, offers one of the better risk-adjusted return profiles in the financial-services sector (and remains a generally solid candidate for downside protection during market selloffs). We remain impressed by Berkshire's ability in most years to generate high-single- to double-digit growth in book value per share, comfortably above our estimate of its cost of capital. We also believe it will take some time before the firm finally succumbs to the impediments created by the sheer size and scale of its operations, and that the ultimate departure of Warren Buffett and Charles Munger will have less of an impact on future operating results than many investors believe. We view Berkshire's decentralized business model, broad business diversification, high cash-generation capabilities, and unmatched balance sheet strength as true differentiators for the firm.

Price vs Fair Value

BRK.A is trading at a 2% premium.
Price
$611,244.00
Fair Value
$727,394.00
Uncertainty
Low
1-Star Price
$847,255.00
5-Star Price
$189,348.00
Economic Moat
Rfqz
Capital Allocation
Dgsyypymb

Bulls Say, Bears Say

Bulls

Book value per share, which is a good proxy for measuring changes in Berkshire's intrinsic value, increased at an estimated 18.3% CAGR during 1965-2022, compared with a 9.9% annualized return for the S&P 500 TR Index.

Bears

Given its size, Berkshire's biggest long-term hurdle will be its ability to consistently find deals that not only add value but are large enough to be meaningful.

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News

Trading Information

Previous Close Price
$604,144.00
Day Range
$602,661.01611,244.00
52-Week Range
$482,500.00647,039.00
Bid/Ask
$400,000.00 / $943,887.27
Market Cap
$878.77 Bil
Volume/Avg
13,396 / 13,471

Key Statistics

Price/Earnings (Normalized)
23.22
Price/Sales
1.98
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.05%

Company Profile

Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm's core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. Berkshire has used the excess cash thrown off from these and its other operations over the years to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the firms that make up its manufacturing, service, and retailing operations (which include five of Berkshire's largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis.
Sector
Financial Services
Industry
Insurance - Diversified
Stock Style Box
Large Growth
Total Number of Employees
396,500

Competitors

Valuation

Metric
BRK.A
ALL
PGR
Price/Earnings (Normalized)
23.22185.8434.36
Price/Book Value
1.542.825.76
Price/Sales
1.980.781.90
Price/Cash Flow
30.3055.4930.44
Price/Earnings
BRK.A
ALL
PGR

Financial Strength

Metric
BRK.A
ALL
PGR
Quick Ratio
Current Ratio
Interest Coverage
25.020.0819.27
Quick Ratio
No chart available

Profitability

Metric
BRK.A
ALL
PGR
Return on Assets (Normalized)
9.57%0.25%4.88%
Return on Equity (Normalized)
18.65%1.72%23.79%
Return on Invested Capital (Normalized)
15.43%1.90%17.59%
Return on Assets
BRK.A
ALL
PGR
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Insurance - Diversified Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BRK.B
Berkshire Hathaway Inc Class BWnpbtvsgnmXplgz$864.8 Bil
ALIZY
Allianz SE ADRVsvfrjswQwfg$109.7 Bil
AXAHY
AXA SA ADRHlqybmgWxl$80.3 Bil
ZURVY
Zurich Insurance Group AG ADRLghlsdbpZkzgsn$70.0 Bil
AIG
American International Group IncCyfkrnkhHbn$49.2 Bil
SLF
Sun Life Financial IncJltyrwxqQphs$29.7 Bil
AVVIY
Aviva PLC ADRNhsgrbtpJdjt$15.4 Bil
AEG
Aegon Ltd ADRDqqplnkqzQzqv$10.4 Bil
AGESY
Ageas SA/ NV ADRBddCbzpw$8.4 Bil

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