From Morningstar: 2024-05-03 06:54:00

Morningstar has increased its fair value estimate for Berkshire Hathaway by nearly 7% due to its unmatched balance sheet and liquidity. The company remains a solid choice for downside protection during market selloffs, with a wide economic moat rating and low uncertainty. The stock is currently valued at $640,000 Class A and $427 Class B.

Berkshire Hathaway’s economic moat is mainly attributed to its insurance operations, which generate low-cost float. This allows the company to generate returns on cash holdings with no cost. Berkshire’s decentralised business model, diversification, and strong balance sheet set it apart in the financial sector. The company’s overall value is estimated at $640,000 for Class A shares and $427 for Class B shares.

Bulls on Berkshire Hathaway highlight the company’s consistent growth in book value per share, solid stock performance, and substantial insurance float of $168.9 billion. On the other hand, bears express concerns about Berkshire’s ability to find meaningful deals due to its size and the impact of Buffett’s longevity on future results. Key Morningstar Metrics for Berkshire Hathaway include a wide economic moat rating and 4-star rating.



Read more at Morningstar: Ahead of Berkshire Hathaway’s AGM, is the Stock a Buy?