Has Berkshire Hathaway Lost The Buffett Premium?

Summary

  • Berkshire Hathaway Inc. has sold off since CEO Warren Buffett announced his retirement, but the fundamentals remain strong. The recent 10% BRK.A stock decline is an overreaction to Buffett's retirement; he remains involved, and the company's fundamentals are intact.
  • Core businesses like insurance and energy are well-positioned to benefit from long-term secular tailwinds, especially with higher interest rates and increased energy demand.
  • Technical analysis shows Berkshire is oversold near the 200-day EMA, presenting a compelling buy-the-dip opportunity for long-term investors.
  • Despite risks from leadership change and business volatility, I remain bullish and rate BRK stock a Buy at current levels.

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Makhbubakhon Ismatova

Thesis Summary

Berkshire Hathaway Inc. (NYSE:BRK.B) is down over 10% since Warren Buffett announced his retirement. Has the company lost its Buffett premium, or is something else going on?

More importantly, what does this mean for investors going

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This article was written by

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James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.

The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more.

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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