Skip to Content
Morningstar
Get 14 Days Free

Berkshire Hathaway Inc BRK.B

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Berkshire Naming Buffett's Successor Is a Net Positive for the Company and Its Shares

Greggory Warren, CFA Sector Strategist

Analyst Note

| Greggory Warren, CFA |

We were a little surprised to see wide-moat rated Berkshire Hathaway actually announce today that Greg Abel would be CEO Warren Buffett's successor once he departs the scene. The surprise, though, was in the timing of the announcement (which apparently was forced by a slip-up on Charlie Munger's part during the annual meeting this past weekend) as opposed to the announcement itself, both of which have had a positive impact on the stock, as it removes one of the major uncertainties hanging over the company.

Read Full Analysis

Company Profile

Business Description

Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm's core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group and Berkshire Hathaway Primary Group. Berkshire has used the excess cash thrown off from these and its other operations over the years to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the firms that make up its manufacturing, service, and retailing operations (which include five of Berkshire's largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis.

Contact
3555 Farnam Street
Omaha, NE, 68131
T +1 402 346-1400
Sector Financial Services
Industry Insurance - Diversified
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Classic Growth
Employees 360,000

Related

Sustainability Matters
Hints of Sea Change in Big Fund Company ESG Proxy Votes
At midseason for 2021 proxy votes, signs of a jump in support.
Jackie Cook
Rekenthaler Report
David Swensen: The Peter Lynch of Institutional Investing
A genius to admire but not emulate.
John Rekenthaler
Stock Analyst Update
Berkshire Annual Meeting Had Moments Needing Follow-Ups
The second virtual meeting lacked quality questions at the managers about the inner workings of Berkshire's businesses.
Greggory Warren
Stock Analyst Update
Revealing Warren Buffett’s Successor is a Net Positive
Berkshire Hathaway announced that Greg Abel would become the next CEO when Buffett departs the scene.
Greggory Warren
Stock Analyst Update
Berkshire Bounces Back in Q1 on Solid Operating Results
Revenue, which includes unrealized and realized gains/losses from Berkshire's investments and derivatives portfolios, increased significantly.
Greggory Warren
US Videos
Questions We'd Like Answered at Berkshire Hathaway's Meeting
The impact of the coronavirus, taxes, cash, and succession planning are topics that we hope Warren Buffett will address on Saturday.
Greggory Warren
US Videos
What's Berkshire Hathaway Worth Today?
Here's our view ahead of its annual meeting.
Greggory Warren
Our Picks
10 Stocks Buffett Might Buy, if He Could
The investing legend might take an interest in these high-quality firms if Berkshire were nimble enough.
Karen Wallace
Special Report
How to Invest Like Warren Buffett
Here's the recipe that one of the greatest investors uses to pick stocks.
Susan Dziubinski
Fund Spy
Funds That Buy Like Buffett, 2021
These funds hold the same stocks that the Oracle of Omaha does.
David Kathman
Our Picks
33 Undervalued Stocks for the Second Quarter
Here are our analysts' top ideas in each sector for the coming quarter.
Susan Dziubinski
Quarter-End Insights
Financials Stocks Should Handle Rising Interest Rates Better Than Other Sectors
Most of the sector is fairly valued.
Michael Wong
Stock Analyst Update
Berkshire Shows Stronger Positioning; We Raise FVE
Here is where our valuations stand with Berkshire's various segments.
Greggory Warren
Investing Specialists
Our Ultimate Stock-Pickers' Top 10 Buys and Sells
Funds see value in a diverse range of sectors.
Malik Ahmed Khan
Berkshire Coverage
Warren Buffett on Bonds, Buybacks, and Apple
What Berkshire Hathaway’s chairman left out of this year’s annual shareholder letter is almost as notable as what he put in.
Susan Dziubinski
Stock Analyst Update
Unrealized Gains and Operating Results Lift Berkshire
We expect to raise our fair value estimate following a stronger conclusion to the company's fiscal year than we had been projecting.
Greggory Warren
Our Picks
3 Warren Buffett Stocks to Buy
These undervalued stocks are among the top holdings in Berkshire Hathaway today.
Susan Dziubinski
Commentary
The Week Ahead: Macy's, Airbnb, and Berkshire Hathaway to Report Earnings
Nvidia and Home Depot are among several big companies on our radar for the week ahead.
Carole Hodorowicz
Stock Analyst Update
Berkshire a Net Seller of Equities in Q4
While the company raised an estimated $10.6 billion during the period by selling positions in 11 different stocks, the trimming of stakes in Apple (57.2 million shares for an estimated $7.1 billion) and Wells Fargo (75.0 million shares for $2.0 billion) accounted for most of the capital raised.
Greggory Warren
Fund Spy
Digging Into Fidelity Contrafund
We reveal how the fund’s underlying holdings stack up on 11 measures of equity-related risk.
Amy C. Arnott