When is it a good time to purchase BRK?
7/22/2025 04:49pm
**Berkshire Hathaway (BRK.A and BRK.B)** is a robust investment candidate under certain conditions, and understanding when to buy can significantly enhance your returns. Here's a detailed analysis:
1. **Q2 Earnings Outlook**: BRK.A and BRK.B are expected to report earnings per share (EPS) of $5.24 for BRK.B, a slight decrease from the previous year's $5.38. However, this decline is not indicative of the company's overall strength or growth potential.
2. **Market Underperformance**: BRK.B has underperformed the S&P 500 Index by 13.6% over the past 52 weeks, with shares up only 7.2% during this period. This underperformance may present a buying opportunity if you believe in the company's long-term value.
3. **Utilities and Energy Segment Challenges**: The Utilities and Energy segment faces challenges, including an unfavorable business mix and declining fuel surcharge revenue. However, this segment also includes stable and essential services that are resilient to economic downturns.
4. **Insurance Investment Income**: The company's insurance investment income totaled $2.9 billion, representing an 11.4% year-over-year increase. This growth in investment income can indicate a strong investment portfolio and potential for future earnings growth.
5. **Analyst Sentiment**: Analysts have a "Moderate Buy" rating on BRK.B, with two advising a "Strong Buy" and four giving a "Hold" rating. The average analyst price target is $537.75, suggesting a potential upside of 13.5% from the current levels.
6. **Technical Indicators**: BRK.B's technical indicators can be analyzed to determine the best time to buy. For example, monitoring the stock's moving averages, support and resistance levels, and volume can provide insights into the stock's momentum and potential price movements.
7. **Dividend Yield**: BRK.B offers a dividend yield, although the exact yield is not provided. A dividend yield can be an attractive factor for income-focused investors, especially if the dividend is sustainable and the company has a history of consistent dividend payments.
In conclusion, the best time to purchase BRK.A or BRK.B may depend on your investment strategy and risk tolerance. If you're a long-term investor looking for stable, resilient assets with potential for growth, now may be a good time to consider BRK, especially if you believe in Warren Buffett's investment philosophy. However, it's important to conduct your own due diligence and consider your investment goals and time horizon before making any investment decisions.