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We came across a bullish thesis on Berkshire Hathaway Inc. (NYSE:BRK-A) on Substack by FluentInQuality. In this article, we will summarize the bulls’ thesis on BRK-A. Berkshire Hathaway Inc. (NYSE:BRK-A)'s share was trading at $684,908 as of Dec 27th. BRK-A’s trailing and forward P/E were 9.23 and 22.99 respectively according to Yahoo Finance.
Berkshire Hathaway (NYSE:BRK.A), led by legendary investor Warren Buffett, stands as a testament to disciplined value investing and long-term growth. Based in Omaha, Nebraska, the conglomerate boasts a diverse portfolio spanning insurance, energy, manufacturing, retail, and transportation. Its subsidiaries include iconic brands like GEICO, BNSF Railway, See’s Candy, and Dairy Queen, alongside substantial equity stakes in companies such as Apple and Coca-Cola. Known for its methodical approach, Berkshire has cemented its reputation as one of the world’s most admired and financially robust enterprises.
Buffett’s unparalleled acumen in identifying undervalued assets and fostering their growth has been a cornerstone of Berkshire’s success. This year, Berkshire consistently outperformed the S&P 500, a reflection of Buffett’s strategy to acquire and hold businesses and stocks that compound value over time. Beyond its equity holdings, Berkshire’s wholly owned businesses generate significant cash flows, creating a self-sustaining cycle of reinvestment and growth. The insurance segment, a critical driver, not only provides steady revenue but also delivers “float” — capital that can be invested to compound returns further. Meanwhile, other subsidiaries, ranging from energy utilities to confectioneries, contribute robustly to the conglomerate’s revenue stream, exemplifying the power of diversification.
The alignment of Berkshire’s operational efficiency and investment philosophy has made it a compounding machine, where every component works seamlessly to drive consistent outperformance. Notably, Warren Buffett’s personal stake of 14% underscores his commitment and alignment with shareholders, reinforcing trust in his stewardship. With a focus on value creation and a track record of resilience across market cycles, Berkshire Hathaway continues to exemplify the potential of disciplined investing, making it a compelling holding for those seeking sustained, market-beating returns.
Berkshire Hathaway Inc. (NYSE:BRK-A) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 120 hedge fund portfolios held BRK-A at the end of the third quarter which was 120 in the previous quarter. While we acknowledge the risk and potential of BRK-A as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BRK-A but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.