Berkshire Hathaway (BRK-B)
Market Price (4/15/2026): $477.91 | Market Cap: $1.0 TrilSector: Financials | Industry: Multi-Sector Holdings
Berkshire Hathaway (BRK-B)
Market Price (4/15/2026): $477.91Market Cap: $1.0 TrilSector: FinancialsIndustry: Multi-Sector Holdings
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 6.5% Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -24% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 11%, CFO LTM is 46 Bil, FCF LTM is 25 Bil Stock buyback supportStock Buyback 3Y Total is 12 Bil Low stock price volatilityVol 12M is 16% | Weak multi-year price returns2Y Excs Rtn is -19%, 3Y Excs Rtn is -17% | Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 22x Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -3.2% |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 6.5% |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -24% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 11%, CFO LTM is 46 Bil, FCF LTM is 25 Bil |
| Stock buyback supportStock Buyback 3Y Total is 12 Bil |
| Low stock price volatilityVol 12M is 16% |
| Weak multi-year price returns2Y Excs Rtn is -19%, 3Y Excs Rtn is -17% |
| Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 22x |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -3.2% |
Qualitative Assessment
AI Analysis | Feedback
1. Declining Operating Earnings in the Insurance Segment. Berkshire Hathaway's Insurance and Other segment experienced a 12.9% year-over-year decline in operating earnings, with specific challenges noted in GEICO due to rising claims severities and increased customer acquisition costs. This contributed to Berkshire Hathaway B's approximately 4.66% decrease in value in 2026 as of March 31.
2. Capital Allocation Concerns Amidst Leadership Transition. The company's significant cash pile, estimated at $381.7 billion as of January 2026, coupled with a reported absence of share repurchases for five consecutive quarters, suggests management does not view the current share price as a significant bargain. This lack of buybacks and questions surrounding the deployment of its vast cash reserves, particularly following Warren Buffett's retirement as CEO on December 31, 2025, and the transition to Greg Abel, have contributed to investor uncertainty.
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Stock Movement Drivers
Fundamental Drivers
The -5.0% change in BRK-B stock from 12/31/2025 to 4/14/2026 was primarily driven by a -4.3% change in the company's P/E Multiple.| (LTM values as of) | 12312025 | 4142026 | Change |
|---|---|---|---|
| Stock Price ($) | 502.65 | 477.54 | -5.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 400,548 | 410,522 | 2.5% |
| Net Income Margin (%) | 16.8% | 16.3% | -3.1% |
| P/E Multiple | 16.1 | 15.4 | -4.3% |
| Shares Outstanding (Mil) | 2,157 | 2,157 | 0.0% |
| Cumulative Contribution | -5.0% |
Market Drivers
12/31/2025 to 4/14/2026| Return | Correlation | |
|---|---|---|
| BRK-B | -5.0% | |
| Market (SPY) | -5.4% | 7.4% |
| Sector (XLF) | -5.5% | 39.5% |
Fundamental Drivers
The -5.0% change in BRK-B stock from 9/30/2025 to 4/14/2026 was primarily driven by a -10.8% change in the company's P/E Multiple.| (LTM values as of) | 9302025 | 4142026 | Change |
|---|---|---|---|
| Stock Price ($) | 502.74 | 477.54 | -5.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 397,146 | 410,522 | 3.4% |
| Net Income Margin (%) | 15.8% | 16.3% | 3.0% |
| P/E Multiple | 17.2 | 15.4 | -10.8% |
| Shares Outstanding (Mil) | 2,157 | 2,157 | 0.0% |
| Cumulative Contribution | -5.0% |
Market Drivers
9/30/2025 to 4/14/2026| Return | Correlation | |
|---|---|---|
| BRK-B | -5.0% | |
| Market (SPY) | -2.9% | 1.8% |
| Sector (XLF) | -3.5% | 43.0% |
Fundamental Drivers
The -10.3% change in BRK-B stock from 3/31/2025 to 4/14/2026 was primarily driven by a -22.2% change in the company's Net Income Margin (%).| (LTM values as of) | 3312025 | 4142026 | Change |
|---|---|---|---|
| Stock Price ($) | 532.58 | 477.54 | -10.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 424,232 | 410,522 | -3.2% |
| Net Income Margin (%) | 21.0% | 16.3% | -22.2% |
| P/E Multiple | 12.9 | 15.4 | 19.2% |
| Shares Outstanding (Mil) | 2,157 | 2,157 | 0.0% |
| Cumulative Contribution | -10.3% |
Market Drivers
3/31/2025 to 4/14/2026| Return | Correlation | |
|---|---|---|
| BRK-B | -10.3% | |
| Market (SPY) | 16.3% | 47.3% |
| Sector (XLF) | 5.0% | 63.7% |
Fundamental Drivers
The 54.7% change in BRK-B stock from 3/31/2023 to 4/14/2026 was primarily driven by a 75.3% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 3312023 | 4142026 | Change |
|---|---|---|---|
| Stock Price ($) | 308.77 | 477.54 | 54.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 234,121 | 410,522 | 75.3% |
| P/S Multiple | 2.9 | 2.5 | -13.3% |
| Shares Outstanding (Mil) | 2,195 | 2,157 | 1.7% |
| Cumulative Contribution | 54.7% |
Market Drivers
3/31/2023 to 4/14/2026| Return | Correlation | |
|---|---|---|
| BRK-B | 54.7% | |
| Market (SPY) | 63.3% | 46.4% |
| Sector (XLF) | 68.2% | 71.4% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| BRK-B Return | 29% | 3% | 15% | 27% | 11% | -5% | 107% |
| Peers Return | 25% | 12% | 13% | 24% | 9% | -1% | 113% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -0% | 81% |
Monthly Win Rates [3] | |||||||
| BRK-B Win Rate | 67% | 50% | 58% | 58% | 50% | 50% | |
| Peers Win Rate | 50% | 60% | 58% | 58% | 60% | 50% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| BRK-B Max Drawdown | -2% | -12% | -5% | 0% | -2% | -7% | |
| Peers Max Drawdown | -6% | -10% | -17% | -2% | -7% | -8% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: PGR, UNP, AIG, ALL, CB. See BRK-B Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 4/14/2026 (YTD)
How Low Can It Go
| Event | BRK-B | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -26.6% | -25.4% |
| % Gain to Breakeven | 36.2% | 34.1% |
| Time to Breakeven | 299 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -29.6% | -33.9% |
| % Gain to Breakeven | 42.0% | 51.3% |
| Time to Breakeven | 238 days | 148 days |
| 2018 Correction | ||
| % Loss | -16.1% | -19.8% |
| % Gain to Breakeven | 19.2% | 24.7% |
| Time to Breakeven | 353 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -53.9% | -56.8% |
| % Gain to Breakeven | 116.7% | 131.3% |
| Time to Breakeven | 1,443 days | 1,480 days |
Compare to PGR, UNP, AIG, ALL, CB
In The Past
Berkshire Hathaway's stock fell -26.6% during the 2022 Inflation Shock from a high on 3/28/2022. A -26.6% loss requires a 36.2% gain to breakeven.
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About Berkshire Hathaway (BRK-B)
AI Analysis | Feedback
Here are 1-2 brief analogies for Berkshire Hathaway:
- Like a modernized, even more diverse version of the historic General Electric, owning everything from insurance companies and railroads to utilities and candy.
- Imagine Procter & Gamble, but instead of just owning many consumer product brands, it owns and operates entire businesses across unrelated industries, like insurance, railroads, and manufacturing.
AI Analysis | Feedback
- Insurance and Reinsurance: Provides property, casualty, life, accident, and health insurance and reinsurance products globally.
- Freight Rail Transportation: Operates extensive freight rail systems across North America.
- Energy and Utilities: Engages in the generation, transmission, storage, and distribution of electricity and natural gas from various sources.
- Manufactured Products: Produces a wide array of goods including building materials, industrial components, food products, consumer items, and specialty chemicals.
- Retail Operations: Sells diverse goods such as automobiles, home furnishings, electronics, jewelry, and apparel through various retail outlets.
- Diversified Services: Offers services including residential construction, lending, logistics, aviation training, and quick service restaurant franchising.
AI Analysis | Feedback
Berkshire Hathaway Inc. (BRK-B) sells primarily to other companies through its diverse portfolio of subsidiaries in industries such as freight rail transportation, reinsurance, industrial manufacturing, and distribution.
Major customers include:
- Aerospace & Defense Companies: As customers of its industrial manufacturing subsidiaries like Precision Castparts.
- Boeing (BA)
- Lockheed Martin (LMT)
- Other Insurance Companies: As customers of Berkshire Hathaway's significant reinsurance operations.
- American International Group (AIG)
- Travelers Companies (TRV)
- Large Retailers and Foodservice Providers: As customers of its logistics and distribution businesses like McLane Company.
- Walmart (WMT)
- McDonald's Corporation (MCD)
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Greg Abel, President & CEO
Greg Abel succeeded Warren Buffett as CEO of Berkshire Hathaway at the beginning of 2026. Prior to this role, he was appointed Vice Chairman of Berkshire Hathaway for non-insurance operations in January 2018. Abel joined CalEnergy in 1992, which later became MidAmerican Energy Holdings Company and then Berkshire Hathaway Energy. He became CEO of MidAmerican in 2008 and chairman in 2011, overseeing the expansion of Berkshire Hathaway Energy into one of North America's largest regulated utility groups. He led CalEnergy's acquisition of MidAmerican Energy Holdings in 1999.
Charles Chang, Senior Vice President and Chief Financial Officer
Charles Chang is set to become Senior Vice President and Chief Financial Officer of Berkshire Hathaway, effective June 1, 2026, succeeding Marc Hamburg. He currently serves as Senior Vice President, Chief Financial Officer, and Director of Berkshire Hathaway Energy, a position he has held since October 1, 2024. Before joining Berkshire Hathaway Energy, Chang was a partner at PricewaterhouseCoopers LLP's Energy Practice for over three decades.
Warren Buffett, Chairman
Warren Buffett is the Chairman of Berkshire Hathaway, having previously served as Chairman and CEO from 1970 to 2025. He began acquiring Berkshire Hathaway stock in 1962 and transformed the company from a struggling textile manufacturer into a multinational conglomerate. Buffett founded Buffett Partnership Ltd. in 1956 and is renowned for his value investing philosophy and successful acquisitions of stakes in various companies.
Ajit Jain, Vice Chairman, Insurance Operations
Ajit Jain is the Vice Chairman of Insurance Operations at Berkshire Hathaway, a position he has held since January 2018. He joined Berkshire Hathaway in 1986 and is widely recognized for building and overseeing the company's global reinsurance and insurance activities, transforming a small operation into a significant business. Prior to his time at Berkshire, Jain worked as a salesman for IBM in India from 1973 to 1976 and then as an executive consultant at McKinsey & Co. from 1978 to 1986.
Ted Weschler, Investment Manager
Ted Weschler joined Berkshire Hathaway in 2012 as an investment manager. Before his tenure at Berkshire, he founded and served as the managing partner of his own hedge fund, Peninsula Capital Advisors, which he shuttered in 2011. Weschler also spent ten years as a partner in Quad-C Management, a private equity firm.
AI Analysis | Feedback
The public company Berkshire Hathaway (symbol: BRK-B) faces several key risks due to its highly diversified business model encompassing insurance, freight rail transportation, utility businesses, manufacturing, and retail operations.
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Catastrophic Events and Climate Change Impacts: Berkshire Hathaway's significant insurance and utility segments are highly vulnerable to catastrophic natural disasters and the increasing impacts of climate change. The insurance operations, including property, casualty, and reinsurance, incur substantial losses from events such as hurricanes and wildfires, which can significantly reduce underwriting profits. Similarly, the utility businesses, particularly those in western states, face billions of dollars in claims and potential liquidity crises due to wildfires linked to their infrastructure. Warren Buffett himself has highlighted that the electric utility sector is not as reliable an investment as it once was due to growing wildfire risks.
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Regulatory and Political Environment: A substantial portion of Berkshire Hathaway's portfolio operates in heavily regulated industries, including insurance, freight rail, and utilities. Changes in regulatory policies, increased political scrutiny, and evolving environmental mandates can lead to higher operating costs, significant capital expenditures, and legal liabilities across these segments. For instance, the freight rail business (BNSF) is exposed to regulatory and labor dynamics, including wage increases mandated by external bodies. The utility businesses are particularly sensitive to regulatory decisions concerning rates and environmental compliance, further exacerbated by liabilities from wildfires. The insurance sector also faces risks from shifts in underwriting cycles and regulations.
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Reliance on Key Personnel for Investment and Capital Allocation Decisions: While not directly an operational risk described in the background, Berkshire Hathaway's historical success as a conglomerate is deeply intertwined with the investment prowess and capital allocation decisions of a few key individuals, notably Warren Buffett and Charlie Munger. Although succession plans are in place with Greg Abel and Ajit Jain, the ongoing ability to identify compelling investment opportunities and allocate capital effectively remains a critical factor for the company's long-term performance and strategic direction. The departure or unavailability of these key executives could impact investor confidence and the company's strategic trajectory.
AI Analysis | Feedback
1. The development and increasing viability of autonomous trucking technology pose a clear emerging threat to Berkshire Hathaway's freight rail transportation business (BNSF Railway). If widely adopted, autonomous trucks could offer lower operating costs, increased efficiency, and potentially faster delivery times for certain types of cargo, directly competing with and potentially diverting freight volume from rail services.
2. The accelerating adoption of decentralized renewable energy generation (such as rooftop solar) and advanced battery storage solutions represents an emerging threat to Berkshire Hathaway's utility businesses. As consumers and businesses increasingly generate and store their own power, it could reduce demand for electricity from traditional grid sources and impact the revenue and infrastructure requirements for centralized utility operations.
AI Analysis | Feedback
Here are the addressable market sizes for Berkshire Hathaway's main products and services:
- Insurance: The global insurance market was valued at $9.0 trillion in 2023. The U.S. insurance market size was $3.7 trillion in 2024 and is projected to reach $9.1 trillion by 2032. Another source indicates the global insurance market was valued at USD 6 trillion. In 2023, the U.S. accounted for $3.226 trillion (44.9%) of the $7.186 trillion global direct premiums written worldwide. The U.S. insurance industry net premiums written totaled $1.7 trillion in 2024.
- Freight Rail Transportation: The global rail freight transport market was valued at $1,561.6 billion in 2024 and is projected to reach $2,125.4 billion by 2035. North America leads this market, holding a significant share of $780.0 million. Another report indicates the global rail freight transportation market size was estimated at USD 202,017.31 million in 2026 and is projected to reach USD 281,943 million by 2035. The North America rail freight transportation market size is forecast to increase by $37.53 billion between 2024 and 2029.
- Electric Utilities (Distribution): The global electric distribution utility market was estimated at $439.1 billion in 2025 and is expected to grow to $801.1 billion in 2035. The global electricity transmission and distribution market size was valued at $397.99 billion in 2025 and is projected to reach $580.51 billion by 2034.
- Natural Gas Distribution and Storage: The global natural gas distribution market, estimated at $1 trillion in 2025, is projected to reach $2.1 trillion by 2034. In the U.S., the natural gas distribution market was $225.5 billion in 2026. The U.S. natural gas distribution market was valued at USD 170.0 billion in 2024. The global natural gas storage market size was estimated at 565.2 billion cubic meters (bcm) in 2024 and is projected to reach 742.3 bcm by 2030, with North America dominating this market.
- Confectionery Products: The global confectionery market size was valued at $220.85 billion in 2025 and is projected to grow to $295.06 billion by 2034. Another source states the global confectionery market size was $314.22 billion in 2024 and is projected to reach $443.38 billion by 2033. The U.S. confectionery market is projected to reach an estimated value of $36.09 billion by 2032.
- Flooring Products: The global flooring market size was valued at $331.9 billion in 2023 and is projected to reach $510.7 billion by 2028. Another estimate places the global flooring market size at USD 385.6 billion in 2025 and projected to reach USD 634.8 billion by 2033.
- Automotive Retail: The global automotive retail market size was valued at $714.43 billion in 2025 and is projected to grow to $1,381.99 billion by 2034. North America holds a significant share, accounting for approximately 40% of the global market. The U.S. automotive retail market is projected to reach USD 141.9 billion by 2026. Another source states the global automotive retail market size was valued at USD 3.92 trillion in 2024 and is expected to reach nearly USD 6.81 trillion by 2032.
AI Analysis | Feedback
Berkshire Hathaway (BRK-B) is anticipated to drive future revenue growth over the next two to three years through several key areas:
- Strategic Acquisitions and Investments leveraging its Cash Reserves: Berkshire Hathaway ended 2025 with substantial cash reserves, exceeding $373 billion. This significant capital provides ample resources for future strategic acquisitions and investments, as exemplified by the $9.7 billion acquisition of Occidental's chemical unit, OxyChem, in early 2026.
- Growth and Efficiency in its Diversified Manufacturing, Service, and Retailing (MSR) Businesses: The company's collection of manufacturing, service, and retailing businesses demonstrated profit growth of 3.3% in the fourth quarter of 2025 and 4.4% for the full year, with strong contributions from segments like Precision Castparts, Marmon, NetJets, FlightSafety, and McLane. These businesses are expected to continue generating significant cash flow and contribute to overall revenue growth.
- Expansion and Improved Performance in Burlington Northern Santa Fe (BNSF) Railway Operations: The BNSF railroad segment saw earnings rise by 5.4% in the fourth quarter of 2025 and 8.8% for the full year. The ongoing trend of "onshoring/near-shoring" manufacturing in North America is expected to act as a significant tailwind for BNSF, increasing domestic freight volumes for industrial components.
- Long-term Opportunities within Berkshire Hathaway Energy (BHE): While BHE experienced some mixed results in 2025, with utilities earnings up but natural gas pipelines and other energy businesses down, the broader energy transition toward renewable sources presents a considerable long-term growth opportunity for the segment, albeit requiring significant capital expenditure.
AI Analysis | Feedback
Share Repurchases
- Berkshire Hathaway repurchased approximately $60 billion of its shares between 2020 and 2022.
- Share repurchases decreased to $9 billion in 2023, $3 billion in 2024, and were zero for the full year 2025.
- The company restarted its share repurchase program in March 2026, adhering to a policy of buying back shares when they trade below intrinsic value and ensuring consolidated cash and equivalents remain above $30 billion.
Outbound Investments
- Berkshire Hathaway's long-term investments increased consistently, from $553.232 billion in 2023 to $622.386 billion in 2024, and $675.541 billion in 2025.
- As of the first quarter of 2025, the company managed an equity investment portfolio valued at approximately $258 billion.
- Recent portfolio adjustments include fully divesting from Citigroup and significantly increasing its stake in Constellation Brands in Q1 2025. Berkshire also completed the acquisition of Occidental Chemical Corporation for approximately $9.7 billion in early 2026, following an announcement in October 2025.
Capital Expenditures
- Annual capital expenditures were $19.409 billion in 2023 and $18.976 billion in 2024.
- Capital expenditures reached $20.072 billion for the latest twelve months ending September 2025, with expected expenditures for the full year 2025 forecasted at $20.927 billion.
- A primary focus for capital allocation going forward, under CEO Greg Abel, is to enhance efficiency across its core business pillars, including Insurance, BNSF Railway, Berkshire Hathaway Energy, and Manufacturing.
Latest Trefis Analyses
Trade Ideas
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| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 03312026 | HBAN | Huntington Bancshares | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 0.0% | 0.0% | 0.0% |
| 03312026 | NP | Neptune Insurance | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 0.0% | 0.0% | 0.0% |
| 03272026 | JKHY | Jack Henry & Associates | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 3.1% | 3.1% | 0.0% |
| 03202026 | MKTX | MarketAxess | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -5.2% | -5.2% | -5.7% |
| 03202026 | RYAN | Ryan Specialty | Insider | Insider Buys | Low D/EStrong Insider BuyingCompanies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | -2.7% | -2.7% | -8.5% |
| 10312022 | BRK-B | Berkshire Hathaway | Insider | Insider Buys | Low D/EStrong Insider BuyingCompanies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | 11.9% | 15.7% | -3.8% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 233.46 |
| Mkt Cap | 121.6 |
| Rev LTM | 63,564 |
| Op Inc LTM | 9,846 |
| FCF LTM | 11,348 |
| FCF 3Y Avg | 10,699 |
| CFO LTM | 11,463 |
| CFO 3Y Avg | 11,441 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 3.3% |
| Rev Chg 3Y Avg | 10.9% |
| Rev Chg Q | 6.7% |
| QoQ Delta Rev Chg LTM | 1.6% |
| Op Mgn LTM | 40.2% |
| Op Mgn 3Y Avg | 39.3% |
| QoQ Delta Op Mgn LTM | -0.4% |
| CFO/Rev LTM | 17.5% |
| CFO/Rev 3Y Avg | 16.8% |
| FCF/Rev LTM | 17.2% |
| FCF/Rev 3Y Avg | 16.6% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 121.6 |
| P/S | 1.8 |
| P/EBIT | 9.5 |
| P/E | 12.9 |
| P/CFO | 11.3 |
| Total Yield | 9.5% |
| Dividend Yield | 2.0% |
| FCF Yield 3Y Avg | 10.4% |
| D/E | 0.1 |
| Net D/E | -0.2 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -0.3% |
| 3M Rtn | 7.9% |
| 6M Rtn | -0.1% |
| 12M Rtn | 4.4% |
| 3Y Rtn | 59.2% |
| 1M Excs Rtn | -5.4% |
| 3M Excs Rtn | 4.2% |
| 6M Excs Rtn | -4.8% |
| 12M Excs Rtn | -26.4% |
| 3Y Excs Rtn | -12.8% |
Segment Financials
Assets by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Insurance | 539,884 | 538,860 | 459,917 | 482,813 | 399,169 |
| Corporate and other | 137,153 | 64,142 | 62,645 | 69,770 | 80,469 |
| Berkshire Hathaway Energy (BHE) | 128,276 | 124,383 | 118,114 | 113,447 | 109,286 |
| Manufacturing | 119,860 | 115,875 | 113,578 | 107,231 | 104,318 |
| Goodwill | 83,880 | 84,626 | 78,119 | 73,875 | 73,734 |
| Burlington Northern Santa Fe, LLC (BNSF) | 80,813 | 79,227 | 77,752 | 76,586 | 73,809 |
| Service and retailing | 37,198 | 34,600 | 31,291 | 28,221 | 26,173 |
| Pilot | 19,652 | 21,404 | 0 | ||
| McLane | 7,165 | 6,861 | 7,049 | 6,841 | 6,771 |
| Total | 1,153,881 | 1,069,978 | 948,465 | 958,784 | 873,729 |
Price Behavior
| Market Price | $477.54 | |
| Market Cap ($ Bil) | 1,030.2 | |
| First Trading Date | 03/17/1980 | |
| Distance from 52W High | -11.5% | |
| 50 Days | 200 Days | |
| DMA Price | $489.47 | $490.35 |
| DMA Trend | indeterminate | down |
| Distance from DMA | -2.4% | -2.6% |
| 3M | 1YR | |
| Volatility | 17.5% | 15.8% |
| Downside Capture | -0.07 | 0.16 |
| Upside Capture | -48.88 | 9.67 |
| Correlation (SPY) | 7.4% | 22.1% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.09 | 0.05 | 0.10 | 0.03 | 0.46 | 0.48 |
| Up Beta | 3.49 | 1.28 | 1.14 | 0.51 | 0.57 | 0.61 |
| Down Beta | 0.27 | 0.42 | 0.46 | 0.10 | 0.52 | 0.47 |
| Up Capture | -95% | -37% | -43% | -16% | 13% | 18% |
| Bmk +ve Days | 7 | 16 | 27 | 65 | 139 | 424 |
| Stock +ve Days | 7 | 19 | 27 | 61 | 124 | 402 |
| Down Capture | 16% | -24% | -11% | -7% | 46% | 61% |
| Bmk -ve Days | 12 | 23 | 33 | 58 | 110 | 323 |
| Stock -ve Days | 15 | 23 | 36 | 65 | 127 | 348 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with BRK-B | |
|---|---|---|---|---|
| BRK-B | -7.0% | 15.8% | -0.64 | - |
| Sector ETF (XLF) | 14.0% | 15.4% | 0.65 | 50.3% |
| Equity (SPY) | 24.2% | 12.9% | 1.49 | 23.6% |
| Gold (GLD) | 53.4% | 27.6% | 1.55 | -14.3% |
| Commodities (DBC) | 26.8% | 16.2% | 1.47 | -19.1% |
| Real Estate (VNQ) | 18.7% | 13.8% | 1.00 | 35.8% |
| Bitcoin (BTCUSD) | -6.8% | 42.9% | -0.05 | -0.6% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with BRK-B | |
|---|---|---|---|---|
| BRK-B | 12.7% | 17.2% | 0.58 | - |
| Sector ETF (XLF) | 10.0% | 18.7% | 0.42 | 79.1% |
| Equity (SPY) | 11.1% | 17.0% | 0.50 | 62.2% |
| Gold (GLD) | 22.5% | 17.8% | 1.03 | 2.7% |
| Commodities (DBC) | 11.7% | 18.8% | 0.51 | 14.1% |
| Real Estate (VNQ) | 3.9% | 18.8% | 0.11 | 53.2% |
| Bitcoin (BTCUSD) | 5.8% | 56.5% | 0.32 | 18.5% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with BRK-B | |
|---|---|---|---|---|
| BRK-B | 13.0% | 19.4% | 0.59 | - |
| Sector ETF (XLF) | 13.1% | 22.2% | 0.54 | 84.9% |
| Equity (SPY) | 14.0% | 17.9% | 0.67 | 74.2% |
| Gold (GLD) | 14.3% | 15.9% | 0.75 | -3.4% |
| Commodities (DBC) | 8.8% | 17.6% | 0.42 | 25.4% |
| Real Estate (VNQ) | 5.4% | 20.7% | 0.23 | 59.0% |
| Bitcoin (BTCUSD) | 67.7% | 66.9% | 1.07 | 15.1% |
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Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 3/2/2026 | 0.2% | 3.5% | -0.2% |
| 11/3/2025 | 2.5% | 4.5% | 5.8% |
| 8/4/2025 | 1.1% | 1.2% | 9.2% |
| 5/6/2025 | 1.1% | -0.1% | -4.6% |
| 2/24/2025 | 0.3% | 2.3% | 6.1% |
| 11/4/2024 | -2.2% | 2.5% | 4.0% |
| 8/5/2024 | 2.0% | 4.0% | 15.7% |
| 5/7/2024 | 0.1% | 1.0% | 1.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 15 | 16 | 16 |
| # Negative | 7 | 6 | 6 |
| Median Positive | 0.6% | 2.4% | 4.3% |
| Median Negative | -1.4% | -1.3% | -1.9% |
| Max Positive | 3.2% | 5.9% | 15.7% |
| Max Negative | -2.5% | -4.7% | -4.9% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 12/31/2025 | 03/02/2026 | 10-K |
| 09/30/2025 | 11/03/2025 | 10-Q |
| 06/30/2025 | 08/04/2025 | 10-Q |
| 03/31/2025 | 05/05/2025 | 10-Q |
| 12/31/2024 | 02/24/2025 | 10-K |
| 09/30/2024 | 11/04/2024 | 10-Q |
| 06/30/2024 | 08/05/2024 | 10-Q |
| 03/31/2024 | 05/06/2024 | 10-Q |
| 12/31/2023 | 02/26/2024 | 10-K |
| 09/30/2023 | 11/06/2023 | 10-Q |
| 06/30/2023 | 08/07/2023 | 10-Q |
| 03/31/2023 | 05/08/2023 | 10-Q |
| 12/31/2022 | 02/27/2023 | 10-K |
| 09/30/2022 | 11/07/2022 | 10-Q |
| 06/30/2022 | 08/08/2022 | 10-Q |
| 03/31/2022 | 05/02/2022 | 10-Q |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Jain, Ajit | Vice Chairman | Jain Foundation Inc. (Non-Profit Corporation) | Sell | 9262025 | 0.00 | 15,000 | Form | ||
| 2 | Jain, Ajit | Vice Chairman | Jain Foundation Inc. (Non-Profit Corporation) | Sell | 8082025 | 464.73 | 2,000 | 929,452 | 56,839,708 | Form |
| 3 | Witmer, Meryl B | Held by Spouse | Sell | 3042025 | 775883.30 | 2 | 1,551,767 | 1,551,767 | Form |
BRK-B Trade Sentinel
OVERWEIGHT (Score 9-10)
CONVICTION RATIONALE
The calculated probability-adjusted skew of 2.50x is highly attractive and falls into Tier 1 (High Conviction). While the BHE wildfire risk is significant, the 60% upside probability is justified by the powerful earnings tailwind from the hard insurance market cycle and the stability of other diversified assets. The market appears to be overly focused on the litigation risk, creating an opportunity where the potential reward from continued operational excellence, even with a 'Contested' moat in one segment, outweighs the quantifiable downside risk. The 'Fair' valuation combined with strong sector trends provides an additional boost, positioning BRK-B as an 'OVERWEIGHT' holding.
STOCK ARCHETYPE
Mature Cash CowBerkshire Hathaway is classified as a 'Mature Cash Cow' due to its immense scale, diversification across stable and regulated industries (insurance, utilities, rail), and its focus on generating substantial, predictable cash flow over achieving high growth. The flattening growth curve and fortress balance sheet are hallmarks of this archetype.
INVESTMENT THESIS
The primary driver of value is the dual engine of the insurance operations: collecting profitable underwriting premiums, especially in a 'hard' pricing market, and investing the massive, low-cost '$171B+' insurance float in a portfolio of productive assets. This creates a self-reinforcing cycle of capital generation.
- Insurance underwriting after-tax earnings increased 66.6% in 2024.
- Insurance Float grew from $171B at YE 2024 to $176B as of Q3 2025, providing incremental low-cost capital for investment.
- The current 'hard market' in Property & Casualty insurance allows for significant pricing power and rising premium rates.
PRIMARY RISK
The single largest friction is the unquantified, multi-billion dollar wildfire liability at Berkshire Hathaway Energy (BHE) via its PacifiCorp subsidiary. A string of adverse legal outcomes could materially impair BHE's earnings power and potentially require a capital injection from the parent company, challenging the narrative of self-sufficient operating subsidiaries.
- PacifiCorp was found grossly negligent in a 2023 jury verdict for 2020 wildfires, with total potential claims estimated in the billions.
- Oral arguments for PacifiCorp's appeal are set for February 2026, with an aggressive trial schedule for damages, creating near-term catalysts.
- PacifiCorp has already suffered a credit rating downgrade, signaling tangible financial stress within the BHE segment.
| KPI | Threshold | Rationale |
|---|---|---|
| Insurance Underwriting Combined Ratio | Sustainably below 95% | This is the core measure of profitability for the insurance engine. A ratio consistently below 100% (and especially below 95%) proves that BRK is generating profits from its insurance operations, not just from the float. |
| BHE Wildfire Litigation Accruals | Quarterly accruals exceeding $1B | This is the leading indicator for the financial impact of the 'Anti-Alpha' risk. A significant step-up in loss reserves would signal that management expects larger-than-anticipated damages. |
| BNSF Revenue Composition (Volume vs. Price) | Positive growth in both volume and revenue per car/unit | Tracks the health of the railroad monopoly. Growth in both metrics, as seen in Q3 2025, indicates strong underlying economic activity and pricing power. A divergence where volume falls while price rises could signal a weakening economy. |
Fortress Under Siege: Can Operational Alpha Outrun Looming Liabilities?
BULL VIEW
Bulls bet record operating earnings, a hard insurance market, and disciplined capital allocation will compound value faster than BHE's legal woes crystallize.
CORE TENSION
Can strong performance in insurance and regulated businesses offset massive, unquantified wildfire liabilities and cyclical weakness in manufacturing and retail?
PREVAILING SENTIMENT
PacifiCorp, a BHE subsidiary, was found grossly negligent, faces billions in potential losses, and has an aggressive trial schedule starting February 2026. This is a structural, not cyclical, risk.
BEAR VIEW
Bears hedge against a multi-billion dollar wildfire liability shock at BHE, which could fracture a core earnings pillar and expose the conglomerate's opacity as a risk.
| Timeline | Event & Metric To Watch |
|---|---|
February 2026 - Ongoing | PacifiCorp Wildfire Litigation Verdicts Watch: Size of damage awards in initial trials. Any commentary on a potential 'global settlement' or further credit downgrades for PacifiCorp or BHE. |
Late February 2026 | Q4 2025 Earnings Release Watch: GEICO's combined ratio. A figure approaching 100% would signal a failure of its high-spend growth strategy and a drag on earnings. |
H1 2026 | Regulatory Ruling on Rail Competition Watch: Surface Transportation Board (STB) decision on 'reciprocal switching' rules. A pro-competition ruling could impact BNSF's pricing power. |
| Date | Event | Stock Impact |
|---|---|---|
8/2/2025 | Q2 2025 Earnings Details: The company reported Q2 results. Despite solid performance in some areas, the stock pulled back as investors digested the complexities of the vast portfolio and potential cyclical headwinds. | Fell notably by -2.90% $472.84 -> $459.11 |
8/13/2025 | Investment in Occidental Petroleum Details: Berkshire increased its stake in Occidental Petroleum, reflecting a continued bullish stance on the energy sector and confidence in its long-term prospects. This strategic capital allocation was well-received. | Modest 1.47% gain $470.39 -> $477.31 |
11/1/2025 | Q3 2025 Earnings Details: Berkshire reported a significant 33.19% EPS beat, driven by strong insurance underwriting results. BNSF volumes grew 1%, showing a mixed but improving demand environment. [2, 3, 5] | Muted (-0.39%) $477.54 -> $475.68 |
12/8/2025 | Major Leadership Transition Announced Details: Berkshire announced Warren Buffett's transition to Chairman, Greg Abel to CEO, and the departure of investment manager Todd Combs to JPMorgan Chase. The news signaled a new era for the company. [8, 10, 11] | Slight -1.41% pullback $504.34 -> $497.23 |
1/7/2026 | Regulatory Shift in Rail Details: The Surface Transportation Board proposed repealing rules that limit 'reciprocal switching,' a move aimed at increasing rail competition. The muted stock reaction suggests the market sees a long road ahead for implementation. | Muted (-0.59%) $499.05 -> $496.12 |
2/4/2026 | PacifiCorp Wildfire Appeal Hearing Details: Oral arguments for PacifiCorp's appeal against the gross negligence verdict were held. The market reacted positively, perhaps hoping for a favorable outcome that could cap the massive liability. | Rose significantly by 2.04% $493.74 -> $503.83 |
Position Sizing
1% - 3%
CONSERVATIVE
Stock is in a Stable Volatility regime (1.18x S&P), but near-term fear is Spiking. The Bearish sentiment, driven by massive unquantified wildfire liabilities, overrides the high visibility and stable moat, forcing a Conservative sizing.
Diversification Alternatives
MKL
INDUSTRYUnlike BRK-B, Markel is a pure-play compounder focused on specialty insurance and a portfolio of smaller, more nimble ventures, avoiding existential legal risks like the BHE wildfires.
DHR
SECTORDanaher offers focused exposure to the resilient life sciences and diagnostics sectors, with a disciplined acquisition strategy (DBS). It avoids BRK-B's commodity and regulatory risks.
Berkshire Hathaway is transitioning from an investment vehicle managed by an iconic capital allocator into a decentralized, cash-generating industrial and insurance conglomerate whose primary challenge is deploying its massive capital base to overcome the law of large numbers.
Filter all news through the lens of capital deployment and the performance of its core, wholly-owned operating businesses (Insurance, BNSF, BHE), not the mark-to-market fluctuations of its equity portfolio.
A major, wholly-owned acquisition in the $50B+ range; sustained underwriting profitability (combined ratio < 100%); increased operating margins at BNSF or BHE; significant share repurchases when the stock trades below management's view of intrinsic value.
Continued growth of the cash pile above $400B without deployment; a significant, multi-quarter decline in insurance underwriting profitability; signs of market share loss at GEICO or BNSF; a major operational failure at a key subsidiary post-transition to new leadership.
Quarterly mark-to-market gains or losses in the public equity portfolio — management explicitly states these are meaningless; minor bolt-on acquisitions (<$5B) — do not move the needle; analyst upgrades/downgrades based on short-term macroeconomic forecasts — the company is managed for decades.
Repricing Catalyst
A large-scale capital deployment event, such as the acquisition of a whole operating company for $50B+, which would utilize the massive cash hoard ($373B as of Dec 31, 2025) and shift the narrative from 'cash drag' to 'earnings growth'.
Insurance & Investments
$149.2B TTM (33% of Total) · 13% MarginWhat It Is
Property and casualty insurance/reinsurance (GEICO, General Re); Investment income from the ~$176 billion 'insurance float' and Berkshire's capital.
Who Pays & How
Millions of individuals and businesses pay premiums for auto (GEICO) and commercial insurance. This generates 'float' – capital Berkshire holds before paying claims – which is invested. This permanent, low-cost capital base is Berkshire's primary competitive advantage.
Competition
Manufacturing, Service & Retailing
$204.9B TTM (45% of Total) · 11% MarginWhat It Is
A vast array of industrial (Precision Castparts, Lubrizol), consumer (Duracell, Fruit of the Loom, See's Candies), and building products (Clayton Homes, Shaw). Also includes service/retail (NetJets, Berkshire Hathaway Automotive).
Who Pays & How
A highly diversified base of industrial and retail customers. They pay for critical industrial components, well-known consumer brands, and services. The model relies on acquiring businesses with strong, durable competitive advantages.
Competition
Railroad (BNSF)
$23.4B TTM (5% of Total) · 34% MarginWhat It Is
Freight rail transportation services across the western United States.
Who Pays & How
Industrial, agricultural, and consumer goods companies pay to ship bulk commodities (coal, grain) and intermodal containers. They pay because rail is the most efficient way to move heavy goods over long distances.
Competition
Utilities & Energy (BHE)
$77.6B TTM (17% of Total) · 8% MarginWhat It Is
Regulated electric and natural gas utilities (PacifiCorp, MidAmerican), natural gas pipelines, and renewable power generation.
Who Pays & How
Millions of residential and commercial customers pay for electricity and natural gas. They pay because BHE is the regulated, and often sole, provider in its service territories.
Competition
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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