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How Berkshire Hathaway (BRK.B) Has Been Trading Recently
Berkshire Hathaway (BRK.B) has seen mixed share performance recently, with the stock up over the past week and month but lower over the past 3 months, year to date, and over the past year.
The stock most recently closed at US$488.13. One day return was about 2.0%, with roughly 2.9% over the past week and 2.6% over the past month, while the past 3 months showed a decline of about 1.8%.
See our latest analysis for Berkshire Hathaway.
That short burst of share price strength over the past week and month sits against a softer backdrop, with the 90 day share price return down 1.8% and the 1 year total shareholder return down 1.1%, while the 3 year total shareholder return of 45.6% and 5 year total shareholder return of 70.2% point to much stronger longer term compounding.
If Berkshire Hathaway’s mix of businesses has you thinking about diversification, it can be helpful to scan for other high quality conglomerates and financials using a curated stock list such as 20 top founder-led companies
With Berkshire’s recent short term pullback sitting alongside strong multi year shareholder returns and an estimated intrinsic value that appears meaningfully higher than the current US$488.13 share price, investors may be wondering whether there is a buying opportunity here or whether the market is already pricing in future growth.
Most Popular Narrative: 99.9% Undervalued
The leading narrative values Berkshire Hathaway at a fair value far above the last close of $488.13, framing the current share price as a steep discount to that estimate.
I am concentrated in 8 companies. Tesla, Meta, Nvidia, Amazon, PLTR, Google, Apple and BRKB. Every time the market drops, my said companies drop and BRKB go up. I have noticed it acts like a safe treasury, but of course, I still know this is a bet.
Want to see why this narrative supports such a high fair value? It leans on long term profit margins, cash generation and a premium future earnings multiple. Curious which assumptions really move that number, and how they compare with other large caps in the portfolio context?
Result: Fair Value of $669,764.35 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this depends on key risks, including weaker profitability or cash deployment than assumed, as well as higher funding costs that reduce the appeal of using margin to hold the stock.
Wall Street’s queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab’s valuation page.
Next Steps
With such a strong view on valuation, do you agree with the balance of optimism and concern here, or see it differently based on your own research? If you want a clearer picture of both the potential upsides and the issues investors are watching, start by reviewing the 2 key rewards and 1 important warning sign
Looking for more investment ideas?
If Berkshire Hathaway is on your radar, do not stop here. Use this momentum to broaden your watchlist with other stocks that might fit your style.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BRK-B.
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