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The shift in leadership at Berkshire Hathaway (BRK.A) to Greg Abel, paired with a new US$10b private placement in Alphabet, has put fresh attention on how Berkshire’s stock reflects this change.
See our latest analysis for Berkshire Hathaway.
Against this backdrop, Berkshire Hathaway’s 30 day share price return of 3.06% and 90 day share price return of 4.93% sit alongside a 1 year total shareholder return of 5.69% and 5 year total shareholder return of 80.08%. This suggests longer term holders have seen stronger compounding than recent momentum implies.
If Abel’s Alphabet move has you thinking about where else capital is being put to work in technology, it may be worth scanning for other focused opportunities through the 52 AI infrastructure stocks
So after Berkshire Hathaway’s leadership change, record cash pile and fresh US$10b Alphabet commitment, does the current share price still leave enough upside to justify the risks, or has most of the easy reward already been taken?
Most Popular Narrative: 19.9% Undervalued
The prevailing Berkshire Hathaway narrative pegs fair value at $943,785.74 per share, compared with the last close of $756,000. This implies a sizeable valuation gap for investors to assess.
Berkshire Hathaway has consistently outperformed the broader market over the long term. This impressive track record, coupled with the company’s strong financial position and disciplined investment approach, makes it a compelling investment opportunity.
Read the complete narrative.
The narrative focuses on Berkshire Hathaway’s long history of disciplined capital allocation, the assumed resilience of its diversified operating businesses, and a valuation framework that incorporates steady revenue growth and healthy margins without relying on aggressive earnings multiples or short term market optimism.
Result: Fair Value of $943,785.74 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, Berkshire Hathaway’s narrative could be tested if the leadership transition under Greg Abel unsettles investor confidence, or if its large cash position drags on returns for a longer period than expected.
Find out about the key risks to this Berkshire Hathaway narrative.
Next Steps
With mixed sentiment around Berkshire Hathaway’s upside and risks, now is a good time to look through the numbers yourself, weigh both sides, and see the 2 key rewards and 1 important warning sign.
