Core Insights - Berkshire Hathaway Inc. (BRK.B) shares have recently shown bullish momentum, surpassing both the 50-day and 200-day simple moving averages, indicating a potential uptrend [1][8] - The average price target from analysts suggests a 7.6% upside from the last closing price, with BRK.B shares up 10.4% year-to-date, outperforming the industry average of 9.9% [2][8] - Berkshire Hathaway operates as a conglomerate with over 90 subsidiaries, providing stability across various economic cycles [2] Financial Performance - The stock is currently trading at a price-to-book multiple of 1.54, which is above the industry average of 1.51 but below the median of 1.57, indicating it may be overvalued compared to its peers [6][8] - Return on equity (ROE) for BRK.B was 7.3%, which is below the industry average of 8%, although it has shown improvement over time [17] - Return on invested capital (ROIC) was 5.7%, lower than the industry average of 6.2%, but has been increasing annually since 2020 [19] Business Segments - The insurance operations of Berkshire Hathaway account for about 25% of total revenues and are a significant driver of long-term value creation, supported by disciplined underwriting and a broad market reach [10] - Berkshire Hathaway Energy (BHE) provides stable cash flows and is expanding investments in renewable energy, aligning with global trends [11] - The manufacturing, service, and retail segments offer diversification and growth potential, benefiting from economic expansion and increased consumer activity [13] Strategic Initiatives - Berkshire has been adjusting its equity portfolio, exiting positions in BYD and reducing stakes in Apple and Bank of America, while increasing exposure to Japanese trading houses and initiating an investment in Alphabet [15] - The company's insurance float has grown from $114 billion in 2017 to $176 billion by the end of Q3 2025, providing a low-cost capital source [16] Analyst Sentiment - The Zacks Consensus Estimate for 2025 and 2026 revenues indicates a 3.5% and 6% year-over-year increase, respectively, while earnings estimates suggest a decline of 5.2% and 3.9% for the same years [20] - Analyst sentiment appears muted, with no movement in earnings estimates over the last 30 days [21] Leadership Transition - Berkshire Hathaway has been a stable investment under Warren Buffett's leadership, with a transition to Greg Abel as CEO set for January 1, 2026, while Buffett will remain as executive chairman [22]
BRK.B Stock Moves Above 50- & 200-Day SMA: Buy, Sell or Stay Invested?