Berkshire Hathaway fundamental analysis

**Berkshire Hathaway (BRK.A) exhibits a complex investment profile with both attractive and concerning fundamental factors.** While the company's diversified portfolio and strong financial position offer resilience, the recent decline in operating earnings and insurance underwriting challenges present cautionary signals. Additionally, the impending CEO transition may introduce uncertainty. Overall, it is a speculative buy with high-risk but potentially high-reward implications.

1. **Financial Performance and Position**:
- Berkshire Hathaway reported a net income of $12.46 billion and total revenue of $98.88 billion.
- The company's diluted EPS stands at $8,601, indicating a strong earnings per share.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2024 Q3|310.71059123100184|2.648E10|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2024 Q4|-47.690555643837065|1.9751E10|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2025 Q1|-63.591022443890274|4.672E9|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2025 Q2|-59.15469866876516|1.2457E10|169|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2024 Q3|78.94595787615084|1.13509E11|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2024 Q4|-22.061602273600123|1.01468E11|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2025 Q1|-9.215761076897925|8.329E10|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2025 Q2|-15.85482086630925|9.8879E10|169|

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2024 Q3|307.0716228467815|18272|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2025 Q1|-63.73937677053825|3200|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2025 Q2|-59.27942429694157|8601|169|

2. **Growth Rates and Trends**:
- Net income and revenue have declined by 59.15% and 15.85%, respectively.
- The diluted EPS growth rate is negative, reflecting a decline in earnings per share.
- The company's free cash flow is substantial at $5.23 billion, suggesting financial flexibility.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2024 Q3|310.71059123100184|78.94595787615084|307.0716228467815|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2024 Q4|-47.690555643837065|-22.061602273600123||169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2025 Q1|-63.591022443890274|-9.215761076897925|-63.73937677053825|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2025 Q2|-59.15469866876516|-15.85482086630925|-59.27942429694157|169|

|code|Ticker|Name|Date|Free Cash Flow|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|market_code|
|---|---|---|---|---|---|---|---|---|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2024 Q3|6.5753034195E10|-3.904E9|1.803E9|-3.065E9|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2024 Q4|8.3439962792E10|4.268E9|4.621E9|1.653E9|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2025 Q1|3.656000476E9|-1.6401E10|1.0903E10|5.3E7|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|2025 Q2|1.458399432E10|4.9358E10|1.0085E10|-1.166E9|169|

3. **Valuation Metrics**:
- The P/E ratio is 16.4, indicating a moderate valuation relative to earnings.
- The P/S ratio is 2.6, suggesting a reasonable valuation based on sales.
- The Price to Book ratio is 1.54, typical for a company with significant goodwill.

|code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code|
|---|---|---|---|---|---|---|---|
|BRK.A|BRK.A.N|Berkshire Hathaway A|20240819|13.16803||1.6068053946017349|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|20240820|13.157464||1.6055160152914176|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|20240821|13.100717||1.5985915708471208|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|20240822|13.188772||1.6093363984330984|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|20240823|13.312637||1.6244507892373736|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|20240826|13.349229||1.6289158620342132|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|20240827|13.528276||1.6507636781257014|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|20240828|13.629089||1.6630653118419139|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|20240829|13.742936||1.6769571800408511|169|
|BRK.A|BRK.A.N|Berkshire Hathaway A|20240830|13.996925||1.7079497995037916|169|

4. **Dividend and Cash Flow**:
- Berkshire Hathaway does not pay dividends, which aligns with its historical policy of reinvesting profits for growth.
- The company's cash flow statements show significant investing and financing activities, with financing cash flow negative due to dividend and share repurchase absence.

|code|Ticker|Name|Date|Dividend Yield (TTM)|market_code|
|---|---|---|---|---|---|
|BRK.A|BRK.A.N|Berkshire Hathaway A|||169|

5. **Strategic Position and Growth**:
- Berkshire Hathaway is a net seller for the 11th consecutive quarter, indicating a strategic shift in portfolio composition.
- Recent investments in companies like UnitedHealth and Nucor reflect a disciplined approach to capital allocation.
- The company's diversified business segments, including insurance, railroads, energy, manufacturing, and retail, provide a balance against sector-specific risks.
6. **Market Sentiment and Outlook**:
- The stock has suffered a decline since Warren Buffett announced his retirement plans, but technical analysis suggests an oversold condition and potential for a rebound.
- Analysts expect a slight decline in Q3 2025 EPS but forecast growth in 2026.
7. **Challenges and Risks**:
- The insurance underwriting performance, particularly in the insurance sector, is a key area of concern.
- The upcoming CEO transition could introduce uncertainty in the company's strategy and performance.

**Conclusion**: Berkshire Hathaway's strong financial position, diversified portfolio, and strategic investments offer a foundation for long-term growth. However, the recent decline in earnings and the absence of dividends suggest a speculative buy with high-risk but potentially high-reward implications. Investors should consider their risk tolerance and investment horizon when evaluating this stock.