Berkshire Hathaway Reports Blowout Quarter; Good Entry Point For New Investors

Includes: BRK.A, BRK.B
by: Philip Davis

Berkshire Hathaway (BRKA), my safety pick in the fall at just $86,000, had spectacular earnings (up 62% to $2.35Bn or $1,522 per share for the quarter) but barely budged to $91,710. If this doesn't get people to buy the markets, I don't know what will, as Berkshire's portfolio is a cross section of American business.

Earnings were expected to be $1,084 so they made this quarter's earnings plus half of the $1,125 they are expected to make next quarter too.

This stock is another fine way to play no hurricanes as insurance claims is the only thing that generally hurts this company (and even then, only for a quarter or two).

The company's quarterly revenue was up 33% to $24.19Bn and they are sitting on $42Bn in cash. I notice that a lot of their new acquisitions are in global construction, another sign that Mr. Buffett believes the world will get along just fine without the US economy having to drive.

You still have the opportunity to pick this stock up for less money than it was selling for in May of 2004, when earnings were just $1,000 per share.

If you don't have $91K sitting around to buy one (I wish they had options!), Mr. Buffett feels your pain and offers BRK.B shares for "just" $3,050 for the budget conscious...

BRKA 1-yr chart: