Why is Berkshire Hathaway stock so expensive? (2024)

Why is Berkshire Hathaway stock so expensive?

Berkshire Hathaway is the world's most expensive stock. One of the main reasons why the company's stock is so expensive is because it never went through a stock split.

Why price of Berkshire Hathaway stock is so high?

Berkshire Hathaway's valuation based on a key financial measure has risen to a six-year high, with potentially negative consequences for the stock. Shares of Warren Buffett's investment conglomerate handily outperformed the S&P 500 index during the first quarter.

Is it worth to buy Berkshire Hathaway stock?

Berkshire Hathaway (BRK.A -0.28%) (BRK.B -0.68%) stock has proven to be one of the best-performing investments of all time. Since 1980, shares have increased more than 2,000 times in value. A $500 investment would now be worth a cool $1 million.

Who owns the most Berkshire Hathaway stock?

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.

Why do people buy Berkshire Hathaway?

Key Points. Berkshire delivers solid returns with less volatility. It owns a high-quality portfolio of companies and publicly traded stocks. Buffett's company has a massive cash position that it can use to capitalize on opportunities in the next downturn.

Why not just buy Berkshire Hathaway?

Berkshire Hathaway doesn't pay dividends

In the comparison to the S&P 500 Index above, the performance figures include reinvested dividends. That is a benefit for the S&P 500, but has no impact on Berkshire Hathaway's performance because the company doesn't pay a dividend.

Is Berkshire Hathaway a long-term buy?

Long-term performance means sticking around

Berkshire Hathaway doesn't pay dividends, so its return remains at 215%. But if you reinvested dividends into the S&P 500, your total return would be about 205%. Berkshire Hathaway's lead isn't quite as compelling anymore.

What are the cons of Berkshire Hathaway?

The company doesn't pay a dividend and has huge amounts of cash on its balance sheet. Berkshire Hathaway is a massive holding company that needs to make big investments to move the needle.

Can you buy 1 share of Berkshire Hathaway?

If you want to invest in Berkshire Hathaway, you can certainly buy some shares of the individual stock, but there is a potentially less risky option: Funds. Funds, such as index funds, exchange-traded funds and mutual funds, are baskets of stocks you can invest in all at once.

Should I invest in Berkshire Hathaway A or B?

Key Takeaways. Berkshire Hathaway Class A is the company's original stock offering, known for its stratospheric price per share. Berkshire Hathaway Class B shares, first issued in 1996, are more modestly priced and have a correspondingly modest share of equity value in the company.

Does Warren Buffett own Walmart?

World's third richest person Warren Buffet's Berkshire Hathaway has sold its last Walmart shares, ending a relationship of over 20 years. The world's largest retailer was once among Berkshire's five biggest equity holdings as recently as 2014, valued at over $5 billion.

What is Buffett's favorite stock?

Although old-guard favorites such as American Express (AXP) and Coca-Cola (KO) still form the core of the portfolio, Buffett & Co. have taken a shine to names such as Apple (AAPL) and Amazon.com (AMZN), and even to lesser-known firms such as Snowflake (SNOW) and Nu Holdings (NU).

What are 5 companies Berkshire Hathaway owns?

What Are Berkshire Hathaway's Biggest Equity Holdings? Five companies make up roughly 79% of Berkshire Hathaway's equity holdings as of December 31, 2023: Apple, American Express, Coca-Cola, Bank of America, and Chevron.

What is the minimum investment in Berkshire Hathaway?

Just know that a $250 investment is no longer even possible. The company's B shares -- its cheapest share class -- now trade at around $400. If you can meet that minimum investment, putting the money into Berkshire still makes a ton of long-term sense.

What banks does Warren Buffett own?

What stock did Warren Buffett just buy?

In his latest shareholder letter, Buffett added other stocks that he said Berkshire "expect[s] to maintain indefinitely." The first new addition to the list was Occidental Petroleum (NYSE: OXY). Berkshire has been buying Occidental shares hand over fist.

What is the controversy with Berkshire Hathaway?

Berkshire disclosed the risk of a lawsuit against its unit over its alleged failure to cover $356 million in costs associated with the 2020 Slater wildfire in southern Oregon and northern California.

What will happen to Berkshire Hathaway after Warren Buffett?

The big changes at Berkshire will come when Buffett is gone. The likely post-Buffett leadership team will be Abel as CEO, Jain overseeing the insurance businesses, and Ted Weschler and Todd Combs, who now run about 10% of Berkshire's $350 billion equity portfolio, overseeing the investment operations.

Is Berkshire Hathaway a safe stock?

Buffett has carefully built Berkshire Hathaway to last long after he's gone, always maintaining a long-term vision at the company that's helped the stock outperform the S&P 500 over the years. But this giant, worth nearly $900 billion, isn't a buy at any price.

Is Berkshire Hathaway a smart investment?

Berkshire's stock performance has generally been solid, increasing at a 9.5% (13.3%) CAGR during 2018-22 (2013-22), compared with a 9.4% (12.6%) average annual return for the S&P 500 TR Index. At the end of June 2023, Berkshire had approximately $166 billion in insurance float.

What is Berkshire Hathaway's largest stock holding?

How high will Berkshire stock go?

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 $443.00 with a high forecast of $481.00 and a low forecast of $405.00. The average price target represents a 9.36% change from the last price of $405.08.

What was Berkshire Hathaway's biggest mistake?

Buffett has turned that failing textile business into a massive conglomerate. Berkshire no longer deals in textiles, with Buffett giving up that particular fight in 1985. Sticking with the textile business may have been one of Buffett's biggest mistakes as CEO of Berkshire Hathaway.

Does Berkshire Hathaway pay a dividend?

Despite being a large, mature, and stable company, Berkshire Hathaway does not pay dividends to its investors. Instead, the company chooses to reinvest retained earnings into new projects, investments, and acquisitions.

What is the biggest loss of Berkshire Hathaway?

Berkshire Hathaway said Saturday that it lost $12.8 billion, or $8,824 per Class A share, in the quarter. That's significantly bigger than the $2.8 billion loss, or $1,907 per Class A share, that it reported a year ago.