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Berkshire Hathaway: All-Time High And Still A Buy

A.J. Button profile picture
A.J. Button


  • Berkshire Hathaway is currently near an all-time high.
  • It's natural to ask whether a stock is overheated when it's soaring amid a broader correction.
  • However, Berkshire's unique mix of assets makes it a perfect holding for this uncertain market.
  • In this article, I make the case that BRK.B could easily set higher highs this year.

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Berkshire Hathaway (NYSE:BRK.B) stock is currently near all-time highs. Trading at $351, it’s just a stone’s throw away from its highest level ever – $362. These highs come after a record year for the company. In the last 12 months, Berkshire

This article was written by

A.J. Button profile picture
Financial journalist. Passed CFA Level 1. "Growth at a reasonable price" investor. Tech and dividend growth. Like classic value plays as well as GARP-y tech stocks. Follow me on Twitter: twitter.com/AJButton2

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BRK.B, GOOG, FB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (29)

dlevine007 profile picture
One way for Berkshire to outperform is for it to go down less than the overall market. I think that this is a likely outcome at some point this year as the economy slows down. I own B shares that I bought in the 180-210 range and I think that $370-380 is a good price target to have based on historical price to book valuations over time. However, even at that price I don’t think I’d sell out completely. I think that trimming and “creating a dividend” for myself is the best option for me. Keep in mind that between 180-210 when I bought “Buffett lost his touch” and now he is unimpeachable. It’s been this way for as long as I can remember.
hugh01 profile picture
The 2 vs 10 just inverted. I suggest you be patient until the inevitable happens.
I Bought BRK at $85.38 in March 2011 till today up 312% in 11 years.
Didn’t think about it -Didn’t worry about it- Didn’t do anything but just make money.
Slow and steady wins the race…
And they laughed at me when I suggested buying Berkshire Hathaway B stock a decade or two ago. Here is a StockCharts.com permalink to the BRK/B chart.
Christopher Mahoney profile picture
FCF Yield:
$BRK.B: 3%
$COIN: 26%
@Christopher Mahoney

Please post how you derived these numbers and the sources involved. I presume Coinbase is on a trailing basis?
One metric by itself is never useful
Christopher Mahoney profile picture
@Land Man21 Free Cashflow (TTM) divided by market capitalization.
I noticed you offered no target where this stock could go in its current structure or what its break value could be?
Long Live $Brk.

Greatest company in the world.
NoTimeToCry profile picture
I may be going on a limb here but I do think BRK-B will double in the next five years. The reason being that his deputies are taking a bit more risk and investing in great growth companies.

I had BRK mid 2020 for about $190 and sold at around $220 (cannot remeber the exact numbers) and thought I was a genius (about $15,000 value). I should have bought more instead :-).

I am going to buy more BRK, TD bank and Vanguars VOO. And let it grow for the next 10 years.
I'd say it's overbought on technicals. Still, I expect every small dip/or sideways trading to be bought pretty quickly
Good article, except Berkshire being a takeover candidate ?Lol
I have been a partner with Warren and Charlie since 1999... I look forward to another 40 year partnership with the successes after they pass on. Great company best balance sheet probably in the world. Add when you can and hold!
02 Apr. 2022
Brk as a takeover target? Who would be big enough to take it over? A government of a sovereign country? A large company that wants to become a conglomerate?
Fliuj profile picture
I wonder which dmbfk were selling BRK B this week to buy ARKK but there was some. Crazy
Gary Kime profile picture
@Fliuj I don’t think people really understand BRK shareholders if you think that happened?
porky11 profile picture
Reinforces many of my views. Like many shareholders I use BRK as a storage of wealth and it grows tax free. My kids will thank me someday.
Briar profile picture
@porky11 More accurately: tax deferred, with some exception.
This is a good stock to own (and I do) during periods of high volatility. You would have to be tired of having money to want to short the stock. However, Buffet’s portfolio strategy can be easily replicated by ordinary investors if they follow some simple rules, which Buffet is very happy to talk about.
@TheHarlequin he's putting his wife's retirement account mainly in an s&p index
@chopchop0 apparently, not sure whether he would still say that now though
Sal's Dad profile picture
@chopchop0 yes, he laid this out in a 2014 interview with Becky Quick.:

"One bequest provides that cash will be delivered to a trustee for my wife’s benefit. . . . My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors . . .”

He goes on:

" I laid out what I thought the average person who is not an expert on stocks should do. And my widow will not be an expert on stocks. And I wanna be sure she gets a decent result. She isn’t gonna get a sensational result, you know? And since all my Berkshire shares are going to philanthropy, the question becomes what does she do with the cash that’s left to her? Part of it goes outright, part of it goes to a trustee. But I’ve told the trustee to put 90% of it in an S&P 500 index fund and 10% in short-term governments. And the reason for the 10% in short-term governments is that if there’s a terrible period in the market and she’s withdrawing 3% or 4% a year you take it out of that instead of selling stocks at the wrong time. She’ll do fine with that. And anybody will do fine with that. It’s low-cost, it’s in a bunch of wonderful businesses, and it takes care of itself.”

Seems like this conservative advice will cover every eventuality, except perhaps a Carrington Event.
Tony Montana Munich profile picture
Thanks for the good article!

Buffett is the genius. I have read many books about him and his investing approach. I think the main thing is, that you must understand the cash flow statement and the so called "margin of safety" principle.

I saw in the chart, that Berkshire stock rose 330% in the last 10 years, while the S&P500 rose only 217%, a big difference....and there is more to come, since Berkshire stock runs better in difficult times normally....
@Tony Montana Munich As a long term shareholder you have to be ready to hold during all those periods people say Warren has lost it.. old school investing doesn't work.. usually when people say that the most its the best time to be an owner.. see 1999-2001 period.. 2008-2009 and even the last two years.. when FANGs were soaring.. and all other crazy tech stocks that didn't make money.
SleepyInSeattle profile picture
Really good article.
I will sell Brk.b when they pull it from my cold, dead hands
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