Core Viewpoint - Berkshire Hathaway stock is currently reasonably valued, making it a potential investment opportunity for long-term wealth building [1][4]. Group 1: Company Performance - Berkshire Hathaway has achieved an impressive 5,500,000% increase in value over 60 years, averaging nearly 20% annually, compared to the S&P 500's 39,000% gain at an average of 10.4% annually [2]. - The company's recent forward-looking price-to-earnings (P/E) ratio is 23.6, slightly above its five-year average of 21.0, and its price-to-sales ratio is 2.5, above the five-year average of 2.2, indicating it is not a screaming buy but still reasonable for long-term investors [4]. Group 2: Investment Portfolio - Investing in Berkshire provides exposure to a diverse range of businesses, including GEICO, Benjamin Moore, See's Candies, and BNSF railroad, as well as a significant stock portfolio with major positions in companies like Apple, American Express, Coca-Cola, and Bank of America [5]. Group 3: Company Structure and Future - Berkshire Hathaway is built to last, with substantial value in resilient industries such as energy, insurance, and transportation. The transition of leadership from Warren Buffett to Greg Abel is planned, with Abel being supported by capable investing lieutenants [6]. - The future of Berkshire may differ from its past, but it remains promising, with the potential for dividends if excess cash becomes available [7].
1 Reason to Buy Warren Buffett's Company, Berkshire Hathaway (BRK.B)