Berkshire Hathaway is one of the most well known names within the market. Here is the breakdown on $BRK.B otherwise known as Berkshire Hathaway.
Current Price: $190.76
52/Wk High: $231.61
52/Wk Low: $159.50
Read below for the breakdown.
While Class A shares trade at massive levels, Class B shares are much more realistic for the everyday trader!
Berkshire Hathaway is the holding company of historic and famed investor Warren Buffett and like him or not Berkshire’s per-share market value has increased 2,744,062% in the past 55 years (motleyfool.com).
The class B shares represent an affordable option to get in on the action and lately the opportunity to get the stock at a reasonable price has come to shine.
The portfolio consists of over 45 companies. Core holdings include $AAPL, $AXP, $KO, $COST, $AMZN, and much more.
What makes Berkshire Hathaway even more attractive is the fact that 46% of its holdings consist of $AAPL stock. Given that $AAPL is one of the best companies in the world with a virtually unstoppable future, the prospects are bright.
The overall portfolio as of the March 31, 2020 SEC filings is a grand total of $221,911,959,388 in value.
Downsides are very much limited in the portfolio as well. Throughout the pandemic Berkshire Hathaway has de risked, selling out of $AAL, $DAL, $LUV, and $UAL.
Not only has the fund de risked by selling out of pandemic prone companies but Berkshire Hathaway has also pounced on opportunity of late.
Recently Berkshire Hathaway acquired Dominion Energy for a whopping $4 billion including debt. While energy is not exciting to most it is energizing that the company is starting to buy opportunity.
Berkshire is also not even close to short on cash. At the end of Q1 the holdings company reported a whopping $137 billion cash position. This cash gives Warren Buffett the opportunity to pretty much take advantage of any attractive investment he pleases.
Digging further into the numbers the stock has mostly underperformed due to the negative past two earnings reports.
Unfortunately, the Q1 report missed. Berkshire Hathaway reported a Q1 miss with a reported $2.41 EPS versus the expected $2.51 EPS. Secondly, some investors did not like the fact that the cash position was so high and wished for more investment.
On a positive note though Berkshire did report a better quarter than the previous Q4 miss.
Getting into the analyst's predictions the outlook is quite bullish. Currently, the median price target is $217.50/share. Secondly, the high PT is $233.00/share and low is $202.00/share.
Given that the stock currently trades at $190.76/share the price targets represent a median gain of 14.02% and show analysts are quite bullish.
The big money is also quite bullish on $BRK.B. Currently, 69.69% of the stock is owned by institutions. Top holders include BlackRock, The Vanguard Group, and State Street Global Advisors.
While the stock does not boast a dividend I think that the positives and long term growth outlook far outweigh the negatives.
Overall I like the stock and class B shares. I think $BRK.B sits at an attractive buying level given that the stock is far off highs and of late has been very much flat.
Throughout the coming weeks and months, I will be looking to make some changes to the portfolio and $BRK.B is very much an opportunity in which I am seeking to take.
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Disclaimer: This is not direct financial advice, simply opinion based on independent research.