icon
icon
icon
icon
Upgrade
Upgrade

News /

Articles /

Berkshire Hathaway: A Long-Term Investment Gem According to Charles Akre

Eli GrantSunday, Dec 15, 2024 8:05 am ET
3min read


Berkshire Hathaway Inc. (BRK-A) has long been a favorite among value investors, and for good reason. The company's diversified business model, strong financial performance, and enduring competitive advantages make it an attractive choice for long-term investors. Charles Akre, a renowned value investor, recently highlighted BRK-A as one of the best stocks to buy for the long term, further cementing its status as a top pick for savvy investors.

Berkshire Hathaway's diversified business model spans insurance, freight rail transportation, and utilities, providing a solid foundation for growth and risk mitigation. With a market cap of $9869.15 trillion and a P/E ratio of 9.24, the company's broad exposure to various sectors ensures steady growth and resilience in the face of market fluctuations. BRK-A's strong earnings, with EPS of $74,218.06 and forward EPS of $29,903.5, indicate a robust financial performance that is poised to continue in the long term.



Akre's investment thesis is built on the premise of examining business models' rates of return and reinvestment opportunities. Berkshire Hathaway's diverse portfolio, which includes investments in companies like Coca-Cola (KO), American Express (AXP), and Apple (AAPL), aligns perfectly with Akre's focus on enduring competitive advantages, robust balance sheets, and long-term earnings growth prospects. BRK-A's commitment to high-quality companies with strong brands, stable earnings, and reinvestment opportunities makes it an ideal long-term investment.



Berkshire Hathaway's strong balance sheet and enduring competitive advantages are key factors in Akre's investment thesis. With a market cap of $9869.15 trillion and a P/E ratio of 9.24, BRK-A offers a solid foundation for growth. The company's ability to generate substantial free cash flow ($96.29 billion) and maintain a strong operating cash flow ($40.37 billion) further supports Akre's investment thesis. Additionally, Berkshire Hathaway's diversified business model provides a competitive advantage that can withstand market fluctuations, making it an attractive long-term investment.

In conclusion, Berkshire Hathaway Inc. (BRK-A) is a prime example of a long-term investment gem, as highlighted by Charles Akre. Its diversified business model, strong financial performance, and enduring competitive advantages make it an ideal choice for investors seeking a solid, long-term holding. By prioritizing these factors, Akre and Berkshire Hathaway aim to create long-term value for their shareholders, making BRK-A an attractive choice for investors seeking a balanced and sustainable investment strategy.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.