Berkshire Stock Long-Term Returns Going DOWN! (pre conference update) | Summary and Q&A

TL;DR

Berkshire Hathaway's stock price has performed well, but investors need to reassess whether it is still a good investment.

Key Insights

• 🙈 Berkshire Hathaway's stock price has seen a significant increase, reflecting overall market trends.
• ❓ The intrinsic value analysis indicates that Berkshire Hathaway is currently overvalued.
• 💪 The company's stability and strong financial position provide a margin of safety for investors.
• 🌍 International investors should consider currency and economic risks when investing in Berkshire Hathaway.
• 🍉 The long-term returns on Berkshire Hathaway stock are expected to decrease as the stock price increases.
• ❓ The hidden earnings of Berkshire Hathaway, not included in financial statements, should also be considered.
• 🛟 Warren Buffett's cash reserves of $140-150 billion provide further security for the company.

Transcript

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Questions & Answers

Q: How has Berkshire Hathaway's stock performance been in the past year?

Berkshire Hathaway's stock price has increased by 64% in the past year, consistent with market trends.

Q: Is Berkshire Hathaway still a buy or a hold?

The current status of Berkshire Hathaway as a buy or a hold depends on several factors, including its valuation and market perspective on the company.

Q: What is the market capitalization of Berkshire Hathaway?

Berkshire Hathaway's market capitalization is $637 billion.

Q: What is the intrinsic value of Berkshire Hathaway according to the provided analysis?

The intrinsic value of Berkshire Hathaway is still below its current market capitalization, suggesting it is overvalued.

Summary & Key Takeaways

• Berkshire Hathaway's stock price has increased significantly over the past year, in line with market trends and stimulus measures.

• The stock was considered a buy in May and March 2020 due to its low price-to-earnings ratio, but the situation has changed since then.

• Current market capitalization is $637 billion, and the intrinsic value suggests the stock is overvalued.