Berkshire Hathaway: What Mr. Buffett Might Be Thinking
Summary
- Berkshire Hathaway Inc., led by Warren Buffett, has outperformed the S&P 500 since 1965 with a 19.9% compounded annual gain versus 10.4% for the S&P 500.
- Berkshire's core businesses include insurance, railroad, and energy, with insurance seeing significant revenue and operating income growth in 2024.
- The insurance segment's success in 2024 was driven by higher premiums, increased property/casualty earnings, and reduced retroactive reinsurance losses.
- Understanding Berkshire's operational performance is crucial, as its equity holdings represent a smaller portion of its total assets compared to its core businesses.
I believe in fundamental analysis and disciplined market research. I have strong quant background with a Ph.D. (Chemical Engineering, University of California, Santa Barbara) in model predictive control and an MBA (Jones School of Business, Rice University). My primary focus is to identify 1) small cap companies with strong fundamentals and growth potential, 2) large cap companies going through temporary set-backs, and 3) stable companies with solid dividend yields and growth potential.
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.
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