Download PDF

1. Company Snapshot

1.a. Company Description

Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide.The company provides property, casualty, life, accident, and health insurance and reinsurance; and operates railroad systems in North America.It also generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets.


In addition, the company manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; flooring products; insulation, roofing, and engineered products; building and engineered components; paints and coatings; and bricks and masonry products, as well as offers manufactured and site-built home construction, and related lending and financial services.Further, it provides recreational vehicles, apparel and footwear products, jewelry, and custom picture framing products, as well as alkaline batteries; castings, forgings, fasteners/fastener systems, aerostructures, and precision components; and cobalt, nickel, and titanium alloys.Additionally, the company distributes televisions and information; franchises and services quick service restaurants; distributes electronic components; and offers logistics services, grocery and foodservice distribution services, and professional aviation training and shared aircraft ownership programs.


It also retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and computers; jewelry, watches, crystal, china, stemware, flatware, gifts, and collectibles; kitchenware; and motorcycle clothing and equipment.The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.

Show Full description

1.b. Last Insights on BRK

Berkshire Hathaway's recent performance was driven by Warren Buffett's continued value investing approach, as evident from his acquisition of a dividend stock that has seen a 4,400% increase in 15 years. The company's ability to adapt to market changes, as seen in its willingness to buy a secret stock, has contributed to its success. Additionally, Buffett's announcement of his intention to step down as CEO after 2025 has sparked discussions about the company's future prospects, with some analysts expressing confidence in Greg Abel's leadership.

1.c. Company Highlights

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

3. NewsRoom

Card image cap

Warren Buffett Sends Investors a $184 Billion Warning. History Says the Stock Market Will Do This Next.

Dec -04

Card image cap

When Others Are Greedy: How to Implement Buffett’s Playbook in Your Own Personal Portfolio

Dec -03

Card image cap

Here's My Top Stock Pick (and Biggest Holding) for 2026

Dec -03

Card image cap

Warren Buffett and Michael Burry Are on Opposite Sides of Artificial Intelligence (AI). Here's What Burry Might Be Missing.

Dec -03

Card image cap

Is Warren Buffett Sending a Quiet Warning to Investors? Here's What You Need to Know.

Dec -03

Card image cap

Buffett Bought Alphabet After I Named It My Top Tech Stock (GOOG, BRK.B)

Dec -02

Card image cap

Warren Buffett, Weeks Before His Retirement, Has a Warning for Wall Street. History Says This May Happen in 2026.

Dec -02

Card image cap

Here Are Billionaire Warren Buffett's 5 Biggest Stock Holdings

Dec -02

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.60%)

6. Segments

Manufacturing

Expected Growth: 4.5%

The growth is slightly lower than the global hypothesis due to potential supply chain issues and raw material cost volatility, which may impact profit margins. However, the diverse product range helps in maintaining a stable growth trajectory.

Mclane Company

Expected Growth: 5.0%

The expected growth is slightly below the global hypothesis, reflecting the competitive nature of the distribution market and potential margin pressures. However, steady demand for groceries supports a relatively stable growth outlook.

Pilot Travel Centers ("PTC")

Expected Growth: 5.5%

The growth is near the global hypothesis, driven by steady demand for trucking services and the diversified offerings at PTC locations. However, fuel price volatility and competition may impact growth.

Insurance - GEICO

Expected Growth: 6.0%

The expected growth is above the global hypothesis, driven by GEICO's competitive positioning and potential for increased market share. Regulatory changes and claims trends will be key factors influencing growth.

Insurance - Berkshire Hathaway Primary Group

Expected Growth: 5.8%

The growth is slightly above the global hypothesis, driven by the diverse insurance offerings and potential for increased demand for commercial insurance products. Underwriting performance and market conditions will influence growth.

Service and Retailing

Expected Growth: 5.2%

The expected growth is slightly below the global hypothesis, reflecting the competitive retail environment and potential impacts from e-commerce. However, the diversity of businesses within the segment supports a relatively stable growth outlook.

Insurance - Berkshire Hathaway Reinsurance Group (Incl. General Re)

Expected Growth: 5.6%

The expected growth is in line with the global hypothesis, driven by the steady demand for reinsurance and the segment's strong market position. Market conditions, including pricing and catastrophe losses, will be key factors influencing growth.

Berkshire Hathaway Energy

Expected Growth: 5.0%

The expected growth is slightly below the global hypothesis, reflecting the regulated nature of the energy industry and potential impacts from energy policy changes. However, steady demand for energy supports a relatively stable growth outlook.

BNSF

Expected Growth: 4.8%

The expected growth is below the global hypothesis, influenced by the cyclical nature of the railroad industry and potential impacts from economic downturns. However, BNSF's large network and focus on efficiency support a relatively stable growth outlook.

Unallocated Investment Income

Expected Growth: 5.6%

The expected growth is in line with the global hypothesis, reflecting the diversified investment portfolio and potential for steady returns. Market conditions, including interest rates and equity performance, will influence growth.

Corporate, Eliminations and Other

Expected Growth: None%

None

7. Detailed Products

GEICO Insurance

Auto, home, and life insurance services

Nebraska Furniture Mart

Home furnishings and appliances retail

Burlington Northern Santa Fe (BNSF) Railway

Railroad and logistics services

8. Berkshire Hathaway Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Berkshire Hathaway's diverse portfolio, including insurance, retail, and manufacturing, makes substitution difficult for customers. For example, customers relying on GEICO for insurance or Nebraska Furniture Mart for furniture have limited substitutes that match the same product and service quality.

Bargaining Power Of Customers

Large institutional customers of Berkshire Hathaway's businesses, such as insurance or manufacturing, have some negotiating power. However, individual consumers in retail or insurance have limited influence, balancing the overall bargaining power to medium.

Bargaining Power Of Suppliers

Berkshire Hathaway's significant market presence and diversified businesses provide a strong negotiating position against suppliers. For instance, its retail operations like McLane Company have substantial purchasing power over suppliers.

Threat Of New Entrants

High capital requirements, regulatory barriers, and brand loyalty across Berkshire Hathaway's various sectors create significant obstacles for new entrants. For example, entering the insurance industry like GEICO requires substantial capital reserves and brand recognition.

Intensity Of Rivalry

Berkshire Hathaway operates in various competitive industries with established players. For instance, the insurance sector has several major competitors like State Farm and Allstate, while retail has competitors like Walmart and Amazon, leading to a medium level of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.10%
Debt Cost 4.55%
Equity Weight 81.90%
Equity Cost 8.87%
WACC 8.09%
Leverage 22.10%

11. Quality Control: Berkshire Hathaway Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
East West Bank

A-Score: 6.6/10

Value: 5.8

Growth: 7.7

Quality: 8.1

Yield: 4.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

Stock-Card
Citigroup

A-Score: 6.2/10

Value: 6.7

Growth: 4.7

Quality: 4.4

Yield: 5.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

Stock-Card
Bank of America

A-Score: 6.2/10

Value: 5.6

Growth: 5.3

Quality: 5.0

Yield: 5.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

Stock-Card
Wells Fargo

A-Score: 6.1/10

Value: 5.9

Growth: 5.2

Quality: 5.7

Yield: 4.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

Stock-Card
Truist

A-Score: 5.8/10

Value: 4.8

Growth: 2.8

Quality: 5.5

Yield: 8.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

Stock-Card
Berkshire Hathaway Inc.

A-Score: 5.2/10

Value: 3.9

Growth: 5.3

Quality: 6.2

Yield: 0.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

501.8$

Current Price

501.8$

Potential

-0.00%

Expected Cash-Flows