Berkshire Hathaway Inc (BRK.B)
Fun Fact
- Buffett bought Berkshire Hathaway so he could fire its CEO.
- Buffett insists on having at least USD 20B in cash on Berkshire's balance sheet at any given time.
- Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities.
- BRK is a constituent stock of the S&P 500 index.
- BRK.B (Class B) is 1/1,500 the price of BRK.A (Class A) stock.
Price | USD 210.44.
Market Capitalization | USD 510B vs Enterprise Value (EV) USD 584B.
Price /Earnings (PE) | 23X. Consider cheap vs S&P average PE of 29X.
Price /Book (PB) | 1.3X. Very cheap vs S&P average PB of 3.8X.
Dividend Yield (DY) | Nil. BRK does not pay dividends vs average DY of S&P 1.8%.
Net Income | USD 22B (+122%).
Net Margin | 27%. This is higher than 67% of the Insurance industry.
Interest Coverage | 36X. Good but still is lower than 61% of the Insurance industry.
Technical Analysis
Long Term Trend | Up.
Short Term Trend | Downtrend with the possibility of an upturn.
Support Line | USD 204.
Resistance Line | USD 217 & next resistance USD 232.
Stochastic | Turned upwards into the neutral zone.
Analyst Consensus
Target Price | USD 225.48.
Call | 2 BUY & 4 HOLD call
Conclusion
BRK is fundamentally strong & valuation cheap. Fine for long term investor. Chart-wise, short term trend might be turning up and stochastic indicator supported this view. Aggressive short term investor can consider this stock.
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