Yahoo Finance·2025-10-31 10:47Core Viewpoint - Berkshire Hathaway is not considered an exciting business in the context of rapidly evolving AI technology and high-flying stocks, but it has strong long-term potential due to its diverse portfolio and substantial cash reserves [1][2]. Group 1: Company Overview - Berkshire Hathaway owns a collection of strong businesses that are expected to perform well regardless of economic or political conditions [2]. - The company has a long history of smart investments that have consistently outperformed the market [2]. - Berkshire Hathaway holds an unmatched cash stockpile of $344 billion, providing significant flexibility to capitalize on market opportunities [2]. Group 2: Market Comparison - A bold prediction is made that by the end of 2030, Berkshire Hathaway will surpass Broadcom in market capitalization [3]. - Broadcom currently has a market cap exceeding $1.7 trillion and has seen a stock price increase of 108% over the past year [4]. - In contrast, Berkshire Hathaway's valuation is just over $1 trillion, and it is not characterized as a momentum stock [4]. Group 3: Valuation Insights - Broadcom's valuation appears disconnected from its growth potential, trading at 96 times earnings and 30 times trailing 12-month sales, despite a solid 22% year-over-year revenue growth [6]. - Berkshire Hathaway is viewed as a slow-and-steady compounding machine, with its operating businesses trading for less than 15 times earnings after accounting for cash and stock portfolio value [7]. - If Berkshire continues to deliver strong returns, it has the potential to surpass Broadcom by the end of 2030 [8].