Berkshire Hathaway Inc. (BRK-B)

Berkshire Hathaway Inc. (BRK-B) Financial Services Profile

Berkshire Hathaway Inc. is a multinational conglomerate holding company with a diverse portfolio spanning insurance, freight rail, utilities, and manufacturing. Known for its value investing approach and decentralized management, the company's financial stability and broad market exposure make it a key player in the financial services sector.

What Is the Investment Thesis for BRK-B?

Berkshire Hathaway's intrinsic value lies in its diversified business model and strong financial position. With a market capitalization of $1.10T and a P/E ratio of 14.6, the company demonstrates financial stability. Key value drivers include the consistent profitability of its insurance operations, the essential nature of its freight rail and utility businesses, and the growth potential of its manufacturing and retail segments. Catalysts for future growth include strategic acquisitions and investments in high-growth sectors. However, potential risks include economic downturns affecting its diverse businesses and succession planning given the age of key leadership. The company's significant cash reserves provide flexibility for future investments and acquisitions, supporting long-term value creation.

Based on FMP financials and quantitative analysis

BRK-B Key Highlights

• Market Cap of $1.10T reflects its position as one of the world's largest companies.
• P/E Ratio of 14.6 indicates a relatively stable valuation compared to high-growth tech companies.
• Profit Margin of 19.3% demonstrates strong profitability across its diverse business segments.
• Gross Margin of 25.1% showcases efficient operations and cost management.
• Beta of 0.70 suggests lower volatility compared to the overall market, making it a relatively stable investment.

Who Are BRK-B's Competitors?

BRK-B is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BRK-B's Key Strengths?

• Diversified business model reduces overall risk.
• Strong financial position with significant cash reserves.
• Decentralized management fosters innovation and efficiency.
• Reputation for financial stability and integrity.

What Are BRK-B's Weaknesses?

• Exposure to cyclical industries, such as manufacturing and retail.
• Succession planning concerns with aging leadership.
• Large size can make it difficult to achieve high growth rates.
• Vulnerability to economic downturns affecting diverse businesses.

What Could Drive BRK-B Stock Higher?

• Strategic acquisitions in high-growth sectors to diversify revenue streams.
• Expansion of renewable energy investments to capitalize on the global shift towards sustainability.
• Leveraging technology to improve operational efficiency across diverse businesses.
• Increased investment in infrastructure development projects to generate stable, long-term returns.

What Are the Key Risks for BRK-B?

• Economic downturns affecting diverse businesses and reducing overall profitability.
• Increasing competition in the insurance and financial services industries.
• Regulatory changes affecting the financial services sector and increasing compliance costs.
• Geopolitical risks affecting global operations and investments.
• Succession planning concerns with aging leadership and potential disruption.

What Are the Growth Opportunities for BRK-B?

• Expansion of Renewable Energy Investments: Berkshire Hathaway Energy has significant opportunities to expand its investments in renewable energy projects, including wind, solar, and hydroelectric power. The global shift towards sustainable energy sources is driving increased demand for renewable energy infrastructure, creating a substantial market opportunity. By investing in new renewable energy projects and upgrading existing infrastructure, Berkshire Hathaway Energy can capitalize on this trend and contribute to a cleaner energy future. This expansion aligns with global sustainability goals and enhances the company's long-term growth prospects.
• Strategic Acquisitions in Growth Sectors: Berkshire Hathaway has a history of making strategic acquisitions in diverse industries. Identifying and acquiring companies in high-growth sectors, such as technology, healthcare, and consumer goods, can drive future growth. These acquisitions can provide access to new markets, technologies, and customer segments, diversifying the company's revenue streams and enhancing its competitive position. The company's strong financial position and reputation make it an attractive acquirer for companies seeking capital and expertise.
• Increased Investment in Infrastructure Development: With the global need for infrastructure improvements, Berkshire Hathaway can expand its investments in infrastructure development projects. This includes transportation, energy, and communication infrastructure. By participating in these projects, the company can generate stable, long-term returns and contribute to economic growth. Infrastructure investments also provide opportunities for synergies with its existing businesses, such as BNSF Railway and Berkshire Hathaway Energy.
• Leveraging Technology to Improve Operational Efficiency: Berkshire Hathaway can leverage technology to improve operational efficiency across its diverse businesses. This includes implementing automation, data analytics, and artificial intelligence to streamline processes, reduce costs, and enhance customer service. By embracing digital transformation, the company can improve its competitiveness and drive long-term growth. This includes modernizing its insurance operations with advanced underwriting and claims processing technologies.
• Expanding Insurance Offerings in Emerging Markets: Berkshire Hathaway's insurance businesses have the potential to expand their offerings in emerging markets. These markets often have underserved populations and growing economies, creating significant opportunities for insurance penetration. By tailoring its insurance products to meet the specific needs of these markets, the company can tap into new revenue streams and diversify its geographic footprint. This expansion requires careful consideration of local regulations and cultural factors.

What Opportunities Does BRK-B Have?

• Strategic acquisitions in high-growth sectors.
• Expansion of renewable energy investments.
• Increased investment in infrastructure development.
• Leveraging technology to improve operational efficiency.

What Threats Does BRK-B Face?

• Increasing competition in the insurance and financial services industries.
• Regulatory changes affecting the financial services sector.
• Economic downturns impacting diverse businesses.
• Geopolitical risks affecting global operations.

What Are BRK-B's Competitive Advantages?

• Diversified Business Model: Reduces risk by operating in multiple industries and sectors.
• Strong Financial Position: Significant cash reserves and a history of generating consistent profits.
• Decentralized Management: Allows subsidiaries to operate independently, fostering innovation and efficiency.
• Brand Reputation: Berkshire Hathaway has a strong reputation for financial stability and integrity.

What Does BRK-B Do?

Berkshire Hathaway Inc. was effectively founded in 1955 through the merger of Berkshire Fine Spinning Associates and Hathaway Manufacturing. However, its transformation into the conglomerate it is today began in 1965 when Warren Buffett took control. Initially focused on textiles, Buffett gradually shifted the company's focus towards insurance and investments. Today, Berkshire Hathaway operates through numerous subsidiaries, including GEICO (insurance), BNSF Railway (freight rail), Berkshire Hathaway Energy (utilities), and a variety of manufacturing and retail businesses. The company's insurance operations provide property, casualty, life, accident, and health coverage, while its freight rail business operates extensively across North America. The utility segment generates and distributes electricity and natural gas. Additionally, Berkshire Hathaway's manufacturing businesses produce a wide range of products, from chocolates (See's Candies) to building materials (Johns Manville). The company's diverse portfolio and decentralized management structure have contributed to its long-term success and stability. Headquartered in Omaha, Nebraska, Berkshire Hathaway has a global presence, with operations and investments spanning multiple continents.

What Products and Services Does BRK-B Offer?

• Provides property, casualty, life, accident, and health insurance and reinsurance.
• Operates railroad systems in North America through BNSF Railway.
• Generates, transmits, stores, and distributes electricity from various sources, including natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal.
• Manufactures boxed chocolates and other confectionery products through See's Candies.
• 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, electronics, and jewelry.

How Does BRK-B Make Money?

• Insurance Operations: Generates revenue through premiums collected from property, casualty, life, accident, and health insurance policies.
• Freight Rail Transportation: Earns revenue by transporting goods across North America via BNSF Railway.
• Utility Operations: Generates revenue from the production, transmission, and distribution of electricity and natural gas.
• Manufacturing and Retail: Generates revenue from the sale of manufactured products and retail goods through its various subsidiaries.

What Industry Does BRK-B Operate In?

Berkshire Hathaway operates within the financial services sector, which is influenced by economic cycles, interest rates, and regulatory changes. The insurance industry, a core component of Berkshire's business, is experiencing increasing competition and evolving risk landscapes. The freight rail industry is vital for transporting goods across North America, while the utility sector is undergoing a transition towards renewable energy sources. Berkshire Hathaway's diverse portfolio allows it to navigate these industry dynamics and capitalize on opportunities across different sectors. Competitors include other large financial institutions and conglomerates, each vying for market share and investment opportunities.

Who Are BRK-B's Key Customers?

• Individuals and businesses seeking insurance coverage.
• Companies that need to transport goods across North America.
• Residential, commercial, and industrial customers who require electricity and natural gas.
• Consumers who purchase manufactured products and retail goods from its various subsidiaries.

Net buyingInsider Activity

The most recent 12 insider filings for Berkshire Hathaway Inc. break down as 11 sales and 1 purchases. On net that is roughly 771 shares acquired (about $0) — insiders putting money in tends to read as conviction.

FY2026 estForward Outlook

Wall Street analysts project Berkshire Hathaway Inc. revenue of about $386.02B for fiscal 2026, with EPS near $20.73.

F-Score 5/9Financial Health

Berkshire Hathaway Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.95 places it in the grey zone, a middle ground that warrants monitoring.

ROE 10%Key Financial Metrics

Return on equity for Berkshire Hathaway Inc. stands at 10.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.8%, showing how much profit it generates from its asset base. BRK-B trades at a trailing price-to-earnings ratio of 14.57, below the Financial Services sector average of ~18x. Its free cash flow yield is 2.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 4.27 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 6.6%, the inverse of the P/E and a quick read on earnings relative to price.

Berkshire Hathaway Inc. (BRK-B) Valuation Context

Valued at $1.10T, BRK-B is classified as a mega-cap stock. Relative to its peer group, BRK-B's quantitative score of 49/100 is below the peer average of 76/100.

BRK-B Revenue & Earnings Trend

In Q1 2026, BRK-B generated $93.67B in top-line revenue, marking a sequential decrease of 0.6%. The company recorded net income of $10.11B, with diluted EPS of $4.68. Revenue has contracted over three consecutive quarters, which investors in this mega-cap Financial Services stock should monitor closely. Across the four most recent quarters, BRK-B averaged $8.40 in diluted EPS.

Company Profile

Berkshire Hathaway Inc. operates in the Insurance - Diversified industry within the Financial Services sector. It is headquartered in Omaha, US. The company is led by CEO Gregory Edward Abel. BRK-B has traded publicly since 1996.

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BRK-B Analyst Consensus

BRK-B MoonshotScore

BRK-B Financial Services Stock 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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