Berkshire Hathaway: The Apple Risk

Jordan Sauer profile picture
Jordan Sauer


  • Berkshire Hathaway is a financial fortress, but BRK.B still comes with risk. One of those is what I like to call, "The Apple Risk."
  • I'll explain why I sold my BRK.B shares, taking a deep dive into Berkshire's stock portfolio.
  • Berkshire trades at 16x my estimate of normalized earnings. In the decade ahead, I'm estimating returns of 7% per annum.

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Buffett's often said Berkshire won't be one of the best performing stocks in the market, nor will it be one of the worst. I'd generally agree with this statement, and maintain a "hold" rating on BRK.B. We'll dig into Berkshire's normalized earnings and expected returns, as

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.

Additional disclosure: This article includes base-case scenario estimates, using known facts and economic projections. The future is uncertain, and investors must draw their own conclusions.

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