BRK-A

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Data sources: market data, fundamentals, news providers. Data may be delayed.

Key Statistics

MoonshotScore Breakdown: 44.5/100

Berkshire Hathaway: A diversified holding company offering stability and growth through its insurance, freight rail, and utility businesses, alongside a diverse portfolio of manufacturing, service, and retail operations, providing investors with a unique blend of value and long-term appreciation.

About BRK-A

Berkshire Hathaway Inc. is a diversified holding company with interests in insurance, freight rail transportation, utilities, and various manufacturing and service businesses. With a market capitalization exceeding $1 trillion, the company operates globally, generating revenue through a wide array of subsidiaries.

Berkshire Hathaway Inc. Company Overview

Founded by Warren Buffett in 1955 as a textile manufacturing company, Berkshire Hathaway has evolved into a global conglomerate with a diverse array of businesses. The company's transformation began in the 1960s when Buffett shifted its focus to insurance and investments. Today, Berkshire Hathaway operates through numerous subsidiaries, spanning various sectors, including insurance (GEICO, General Re), freight rail transportation (BNSF Railway), and utilities and energy (Berkshire Hathaway Energy). In addition to these core sectors, Berkshire Hathaway has significant holdings in manufacturing, service, and retail businesses. Its manufacturing operations produce everything from specialty chemicals and metal cutting tools to flooring products and engineered components. The company's service businesses include logistics, grocery and foodservice distribution, and professional aviation training. Berkshire Hathaway's retail operations encompass a wide range of products, including recreational vehicles, apparel, jewelry, furniture, and household appliances. Headquartered in Omaha, Nebraska, Berkshire Hathaway's decentralized management approach empowers its subsidiaries to operate autonomously, fostering innovation and efficiency. With a global presence and a proven track record of value creation, Berkshire Hathaway remains a prominent player in the global economy.

Investment Thesis

Berkshire Hathaway presents a compelling investment opportunity due to its diversified business model, strong financial performance, and experienced management team. The company's insurance operations provide a stable source of capital, while its freight rail and utility businesses offer consistent earnings and growth potential. Berkshire Hathaway's decentralized structure allows its subsidiaries to operate efficiently and adapt to changing market conditions. With a market capitalization of $1086.68 billion and a profit margin of 17.8%, Berkshire Hathaway demonstrates its ability to generate substantial returns. The company's ongoing investments in growth initiatives and strategic acquisitions are expected to drive future earnings growth. As of 2026, Berkshire Hathaway's intrinsic value continues to grow, making it an attractive long-term investment.

Key Financial Highlights

• Market capitalization of $1086.68 billion reflects the company's significant size and market dominance.
• P/E ratio of 16.12 indicates a reasonable valuation compared to its earnings.
• Profit margin of 17.8% showcases the company's ability to generate substantial profits from its operations.
• Gross margin of 28.7% demonstrates efficient cost management across its diverse businesses.
• Beta of 0.70 suggests lower volatility compared to the overall market, providing stability for investors.

Industry Context

Berkshire Hathaway operates within the financial services sector, specifically the insurance and diversified financial services industries. The insurance industry is characterized by intense competition, evolving regulatory landscapes, and the need for effective risk management. The freight rail transportation industry is essential for moving goods across North America, with demand driven by economic growth and infrastructure development. The utilities sector provides essential services such as electricity and natural gas, with increasing focus on renewable energy sources. Berkshire Hathaway's diversified business model allows it to navigate these varying industry dynamics, capitalizing on growth opportunities while mitigating risks. Competitors include companies like AIG, BAC, BNT, JPM, and ORI, each with their own strengths and market focuses.

Quarterly Financial Summary

Source: Company filings. Data may be delayed.

Growth Opportunities

• Expansion of Renewable Energy Portfolio: Berkshire Hathaway Energy is well-positioned to capitalize on the growing demand for renewable energy. With increasing investments in wind, solar, and hydroelectric power generation, the company can benefit from government incentives and consumer preferences for clean energy. The global renewable energy market is projected to reach $2.15 trillion by 2030, presenting a significant growth opportunity for Berkshire Hathaway. This expansion aligns with global sustainability trends and enhances the company's long-term value.
• Strategic Acquisitions in Manufacturing Sector: Berkshire Hathaway can continue to acquire well-managed manufacturing companies with strong brands and competitive advantages. By leveraging its financial strength and decentralized management approach, the company can enhance the performance of acquired businesses and expand its presence in key manufacturing industries. The manufacturing sector is expected to grow steadily, driven by technological advancements and increasing demand for manufactured goods. This strategy allows Berkshire Hathaway to diversify its earnings and enhance its overall profitability.
• Growth in Insurance Operations: Berkshire Hathaway's insurance subsidiaries, including GEICO and General Re, can continue to grow by expanding their market share and offering innovative insurance products. The increasing demand for insurance coverage, driven by factors such as population growth and rising asset values, presents a significant growth opportunity. By leveraging its strong brand reputation and efficient operations, Berkshire Hathaway can attract new customers and retain existing ones. The global insurance market is projected to reach $7.7 trillion by 2027, providing ample room for growth.
• Increased Investment in Technology Companies: Berkshire Hathaway can increase its investments in technology companies that align with its long-term investment strategy. By identifying companies with strong growth potential and sustainable competitive advantages, Berkshire Hathaway can benefit from the rapid advancements in technology and the increasing demand for digital products and services. The technology sector is expected to continue to grow rapidly, driven by factors such as artificial intelligence, cloud computing, and e-commerce. This strategy allows Berkshire Hathaway to diversify its portfolio and enhance its long-term returns.
• Expansion of BNSF Railway Services: BNSF Railway can expand its services by investing in infrastructure improvements and enhancing its operational efficiency. The increasing demand for freight rail transportation, driven by economic growth and the need for efficient supply chains, presents a significant growth opportunity. By leveraging its extensive rail network and advanced technology, BNSF Railway can attract new customers and increase its market share. The freight rail transportation market is projected to grow steadily, driven by factors such as increasing trade and infrastructure development. This expansion enhances Berkshire Hathaway's transportation capabilities and contributes to its overall profitability.

Competitive Advantages

• Diversified Business Model: Reduces risk by operating in multiple sectors.
• Strong Brand Reputation: Enhances customer loyalty and attracts new customers.
• Decentralized Management: Fosters innovation and efficiency within its subsidiaries.
• Financial Strength: Provides access to capital for strategic investments and acquisitions.

Strengths

• Diversified business model reduces overall risk.
• Strong financial performance with high profit margins.
• Experienced and respected management team.
• Significant cash reserves for strategic investments.

Weaknesses

• Decentralized structure can lead to inconsistencies.
• Reliance on key personnel, such as Warren Buffett.
• Exposure to cyclical industries, such as manufacturing.
• Complex organizational structure can hinder agility.

Opportunities

• Expansion into new markets and industries.
• Strategic acquisitions to enhance existing businesses.
• Increased investment in renewable energy.
• Leveraging technology to improve operational efficiency.

Threats

• Economic downturns impacting various business segments.
• Increasing competition in key industries.
• Regulatory changes affecting insurance and financial services.
• Geopolitical risks impacting global operations.

What BRK-A Does

• Provides property, casualty, life, accident, and health insurance and reinsurance.
• Operates railroad systems in North America.
• Generates, transmits, stores, and distributes electricity from various sources, including natural gas, coal, wind, and solar.
• Manufactures boxed chocolates and other confectionery products.
• Produces specialty chemicals, metal cutting tools, and components for aerospace and power generation applications.
• Offers manufactured and site-built home construction, and related lending and financial services.
• Retails automobiles, furniture, bedding, household appliances, and electronics.
• Distributes televisions and information and franchises quick-service restaurants.

Business Model

• Insurance Operations: Generating premiums from property, casualty, life, accident, and health insurance policies.
• Freight Rail Transportation: Providing freight transportation services through its BNSF Railway subsidiary.
• Utilities and Energy: Generating and distributing electricity and natural gas through its Berkshire Hathaway Energy subsidiary.
• Manufacturing and Retail: Producing and selling a wide range of manufactured goods and retail products through its various subsidiaries.

Key Customers

• Individuals and businesses seeking insurance coverage.
• Companies requiring freight rail transportation services.
• Consumers and businesses relying on electricity and natural gas.
• Consumers purchasing manufactured goods and retail products.
• Aviation professionals seeking training and shared aircraft ownership programs.

Competitors

• American International Group, Inc. (AIG): Global insurance company with a broad range of products and services.
• Bank of America Corporation (BAC): Multinational investment bank and financial services company.
• Bannertons Inc. (BNT): Financial services and investment management firm.
• JPMorgan Chase & Co. (JPM): Global financial services firm offering investment banking and asset management.
• Old Republic International Corporation (ORI): Insurance holding company specializing in property and casualty insurance.

Catalysts

• Ongoing: Continued growth in the insurance sector, driven by increasing demand for coverage.
• Ongoing: Expansion of renewable energy portfolio, benefiting from government incentives and consumer preferences.
• Upcoming: Strategic acquisitions in manufacturing and technology sectors to enhance diversification.
• Ongoing: Infrastructure investments to improve the efficiency of BNSF Railway.
• Ongoing: Leveraging financial strength to capitalize on market opportunities.

Risks

• Potential: Economic downturns impacting various business segments, reducing revenue and profitability.
• Ongoing: Increasing competition in key industries, eroding market share and pricing power.
• Potential: Regulatory changes affecting insurance and financial services, increasing compliance costs.
• Potential: Geopolitical risks impacting global operations, disrupting supply chains and increasing costs.
• Ongoing: Succession planning for key personnel, ensuring a smooth transition of leadership.

FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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