Berkshire Hathaway: Tough Comparison Ahead

(8min)

Summary

  • Berkshire Hathaway is very likely to deliver terrific performance for the full year 2024.
  • However, its earnings after that will face tough comparisons in the coming years, with an almost flat EPS projection between FY 2025 and 2027.
  • In the meantime, the company has halted share repurchases and sits on a record cash position.
  • Such capital allocation changes signal to me its heightened valuation risks and lack of deployment opportunities.
  • Looking for more investing ideas like this one? Get them exclusively at Envision Early Retirement. Learn More »

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Berkshire stock: previous thesis and new developments

I have become lukewarm toward Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) shares lately. As you can tell from my publication record, I started arguing for a HOLD thesis since

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This article was written by

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Envision Research, aka Lucas Ma, has over 15+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of BRK.B 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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