Think It's Too Late to Buy Berkshire Hathaway? Here's the Biggest Reason There's Still Time.
I've said many times before that if I could only own one stock, it would be Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). In short, investing in Berkshire is like buying a diversified investment portfolio selected by some of the best minds in the industry.Recently, Berkshire became the first stock outside the technology sector to reach a $1 trillion valuation, and many investors think it might be too expensive to buy right now. But I'm not so sure.As of this writing, Berkshire has a $1.014 trillion market cap, and its stock portfolio has a value of about $301 billion. If we subtract that, and the $325 billion in cash Berkshire reported on its balance sheet at the end of the third quarter, we see the market is valuing Berkshire's businesses at about $388 billion. This is about 12.5 times trailing-12-month operating earnings, a lower valuation than most stocks on my radar.Continue reading
I've said many times before that if I could only own one stock, it would be Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). In short, investing in Berkshire is like buying a diversified investment portfolio selected by some of the best minds in the industry.
Recently, Berkshire became the first stock outside the technology sector to reach a $1 trillion valuation, and many investors think it might be too expensive to buy right now. But I'm not so sure.
As of this writing, Berkshire has a $1.014 trillion market cap, and its stock portfolio has a value of about $301 billion. If we subtract that, and the $325 billion in cash Berkshire reported on its balance sheet at the end of the third quarter, we see the market is valuing Berkshire's businesses at about $388 billion. This is about 12.5 times trailing-12-month operating earnings, a lower valuation than most stocks on my radar.
