After Hitting All-Time Highs This Year, Is Berkshire Hathaway a Buy Today?

Once the Trump administration began to implement a comprehensive tariff against the US major trading partners in April, investors dug up the US risk property and participated to the cover, realizing a significant disruption in the market. They piled into cash, gold and property, which believed that they could provide a port in the storm.

One of them is Berkshire Hathaway (Brk.a 1.01%, (BRK.B 1.11%,One of the world’s largest groups, of course, is run by the world’s best investor, Warren Buffett. Berkshire’s stock was around 10% (until June 4) compared to a comprehensive benchmark. S&P 500There is about 2% profit. Berkshire’s stock also hit an all-time high earlier this year. Is the stock still a purchase?

A well -balanced business that is not cheap

In addition to their strong team of buffett and lieutenant and managers, one thing is liked by investors about Berkshire, a variety of businesses under the large group umbrella. Berkshire not only conducts a large -scale stock portfolio, but is also a large insurance business as the owner of Geico. The company also has energy assets, Burlington North Santa FE Railroad and a slate of a hostage business.

Image Source: Motten Fool.

Some of these areas can be difficult to operate alone, but together they provide diversity and have converted Berkshire into a jugornot, which earns more than $ 89.5 billion in 2024. It also had a $ 47.4 billion operating earnings, which Buffett believes that there is a better metric for the company, as it removes the chaotic capital Jens.

Another reason investors see Berkshire as a flight for security because the company is due to the large scale cash hoard. Investments of the United, Berkshire’s cash, cash counterpart, short-term American Treasury Investment, and fixed-periphelies securities were unreliable of total $ 357 billion. Berkshire is now allegedly about 5% of the short-term Treasury Bill Market. The huge pile of cash gives Berkshire a large margin of security – and also a war chest, the market should have an opportunity that Berkshire finds compelling.

Now, after a strong run, it is always important to see the evaluation of stock. In a way, investors prefer to give value to Berkshire, which is on a price-to book price (TBV) basis, which is the constant way of investors’ price bank and insurance stock.

BRK.B Price for Book Price Data by Ycharts.

As you can see above, Berkshire’s stock recently traded a little under TBV twice. It has reached stock earlier this year, but is above the company’s five -year average.

Can you still buy Berkshire?

While Berkshire’s stock looks a bit expensive right now, I still think that long -oriented investors will be served well with its owner. For one, Buffett and his team have created Berkshire, which means that it can perform well through the completeness of the economic cycle including strict parts.

Berkshire’s equity portfolio is in touch with development shares such as tech and artificial intelligence, but management oil and gas also clearly have big believers, which they can see as a finite resource. Not only does the company owner and operate energy businesses, but Berkshire has major bets among big domestic oil and gas producers like density And ShehtirThese shares should perform well if the price of oil, which trades into the barrel of a low $ 60, eventually increases.

Investors may be worried about the fact that Buffett, who is 94 years old, is preparing to retire at the end of 2025 after more than six decades on the job. No one will ever be able to replace Omaha’s Oracle, but the upcoming CEO Greg Abel is more than competent. Without the Buffett brand, I think Berkshire can also try to woo investors by returning more capital to shareholders through repair and perhaps a dividend, which Berkshire has never paid before.

Therefore, with the departure of Buffett, which will remain as the chairman of the board of directors of the company, it is not all doom and sadness. There is still a lot for investors to look forward.