From Morningstar: 2024-08-29 11:10:00

Berkshire Hathaway’s market capitalization surpasses $1 trillion, joining exclusive company like Apple and Microsoft. The conglomerate’s investments have seen a 30% increase this year despite the dominance of tech stocks. Morningstar strategist Greggory Warren notes Berkshire’s atypical performance and potential investor motives. Berkshire also achieved a record $277 billion cash pile.

Berkshire’s Q2 earnings show a 15.5% increase in operating earnings to $11.6 billion. Insurance operations provide steady growth despite challenges in railways and energy units. The firm’s investment portfolio benefits from shifting its capital into Treasury bills. Berkshire maintains stakes in Apple and Bank of America while reducing equities overall.

Berkshire remains moderately overvalued with a 2-star rating and fair value estimate of $640,000 per Class A share. The firm is seen as a defensive stock, typically rising when markets decline. Berkshire’s economic moat rating remains wide due to strong insurance operations generating underwriting gains and low-cost float. Financially, Berkshire is well-positioned with a strong balance sheet.



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