The abovementioned argument, coupled with BRK-B trading at the higher end of its historical range, led the author to the conclusion that BRK-B is overvalued relative to the market.
Although there's no telling where BRK. B shares could be 20, 30 or 40 years from now, it's possible to get a rough idea of the 10-year horizon. By some forecasts, shares of Berkshire could trade as high as $900 by 2034.
As of today (2025-01-12), Berkshire Hathaway's share price is $442.66. Berkshire Hathaway's Book Value per Share for the quarter that ended in Sep. 2024 was $291.72. Hence, Berkshire Hathaway's PB Ratio of today is 1.52.
As of 2025-01-12, the Fair Value of Berkshire Hathaway Inc (BRK.B) is 1,241.08 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 442.66 USD, the upside of Berkshire Hathaway Inc is 180.4%.
Warren Buffett's Berkshire Hathaway outperforms S&P 500 in 2024.
After seven straight days of gains that propelled Berkshire Hathaway's Class A shares 6.8% higher, the stock closed today at a fresh all-time high of $582,300 per share. Over the past five years, they have increased by almost 92% vs. the S&P's 83.5% gain, excluding dividends.
Class A shares offer a long-term investment but little chance of a stock split down the line. Investors looking for flexibility might prefer to invest in Berkshire's Class B shares. They can add to their stake or trim it from time to time without dealing in the six-figure numbers that a single Class A share represents.
As of 2025-01-07, the Intrinsic Value of Berkshire Hathaway Inc (BRK.B) is 576.52 USD. This BRK. B valuation is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 451.41 USD, the upside of Berkshire Hathaway Inc is 27.7%.
The top three individual shareholders are Warren Buffett, Susan Buffett, and Ronald Olson. The company's top three institutional shareholders are Vanguard, BlackRock, and State Street.
Berkshire Hathaway has not announced any plans for BRK. B to have a stock split again.
However, Berkshire Hathaway is a clear winner and an excellent stock to buy and hold in a diversified portfolio. You don't part with such stocks easily, so investors should think twice before selling if they already own it.
As of today (2025-01-12), Berkshire Hathaway's Volatility is 19.43%.
Top Warren Buffett Stocks
Coca-Cola (KO), 400 million. Kraft Heinz (KHC), 325.6 million. Apple (AAPL), 300 million. Occidental Petroleum (OXY), 264.3 million.
The 20 year total return for BRK. B stock is 673.96%.
Definition of 10 Year Price Total Return
Last Close Price [ 442.66 ] / Adj Prior Close Price [ 148.28 ] (-) 1 (=) Total Return [ 198.5% ] Prior price dividend adjustment factor is 1.00.
B (Berkshire Hathaway) Net Cash per Share : $-89.49 (As of Sep. 2024)
Despite being a large, mature, and stable company, Berkshire Hathaway does not pay dividends to its investors.
Average Price Target
Based on 2 Wall Street analysts offering 12 month price targets for Berkshire Hathaway B in the last 3 months. The average price target is $490.50 with a high forecast of $531.00 and a low forecast of $450.00. The average price target represents a 8.30% change from the last price of $452.92.
Looking at the S&P 500 from 2013 to mid-2023, the average S&P 500 return for the last 10 years is 12.39% (9.48% when adjusted for inflation), which is also higher than the annual average return of 10%.
The closing price for Berkshire Hathaway (BRK. A) in 1984 was $1,275, on December 31, 1984. It was down 1.9% for the year. The latest price is $677,000.