Berkshire Hathaway: Lower Returns Ahead

May 27, 2022 2:03 PM ETBerkshire Hathaway Inc. (BRK.A), BRK.B198 Comments
Jordan Sauer profile picture
Jordan Sauer


  • A detailed estimate of Berkshire's future growth and true earnings power points to lower returns ahead for BRK.B.
  • With a strong balance sheet, slowing growth, and long-duration cash flows, an investment in BRK.B is a question of your investor profile.
  • From these price levels, we believe BRK.B will return an underwhelming 6% per annum to long-term shareholders.

Warren Buffett Testifies Before Senate Finance Committee

Alex Wong/Getty Images News

A hush fell over the crowd at the Berkshire Hathaway 2022 Annual Meeting as Warren Buffett announced his decision to slow Berkshire Hathaway's (NYSE:BRK.B) share repurchases. Berkshire has now outperformed the S&P 500 over the past

Data by YCharts

Berkshire Hathaway's 2019-2021 Statement of Cash Flows

Cash Flow From Operating Activities (Berkshire Hathaway Annual Report, 2021)

This article was written by

Jordan Sauer profile picture
A natural contrarian, business student, and value investor, I seek opportunities in the market that present outsized returns. I am constantly analyzing financial statements, stress-testing my opinions, and studying the principles of great investors.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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